Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
1) Suppose the between peanut butter and jelly is -2.50. This implies that a 20 percent
increase in the price of peanut butter will cause the quantity of jelly purchased to
a.fall by 8 percent.
b.fall by 50 percent.
c.rise by 8 percent.
d.rise by 50 percent.
2) Nancy and Sheila are both loan officers who graduated from the same university with
bachelors' degrees in economics, and achieved similar performance reviews. Nancy
started working one year before Sheila. If Nancy earns a higher annual salary than
Sheila because she has more experience, the employer is
a.rewarding increases in human capital.
b.paying efficiency wages.
c.practicing discrimination.
d.paying a compensating differential.
3) Figure 14-10
In the figure below, panel (a) depicts the linear marginal cost of a firm in a competitive
market, and panel (b) depicts the linear market supply curve for a market with a fixed
number of identical firms.
