Suppliers will be willing to supply a product in all of the following situations except
A) the price received is greater than the additional cost of producing the product.
B) the price received is at least equal to the additional cost of producing the product.
C) the price received is equal to the additional cost of producing the product.
D) the price received is less than the additional cost of producing the product.
Assume that the demand curve for MP3 players shifts to the right and the supply curve
for MP3 players shift to the left, but the supply curve shifts more than the demand
curve. As a result
A) both the equilibrium price and quantity of MP3 players will decrease.
B) the equilibrium price of MP3 players will decrease; the equilibrium quantity will
increase.
C) the equilibrium price of MP3 players may increase or decrease; the equilibrium
quantity will decrease.
D) the equilibrium price of MP3 players will increase; the equilibrium quantity will
decrease.
Which type of business has the least government rules and regulations affecting it?
A) sole proprietorship
B) partnership
C) corporation
D) They all have the same set of rules and regulations affecting them.
Figure 4-10 Figure 4-10 shows the
market for apartments in Bay City. Recently, the government imposed a rent ceiling at
R0. Suppose that instead of a price ceiling, the government imposed a price floor of R1.
What is the area representing producer surplus after the imposition of the price floor?
A) A
B) B + D + F
C) C + E
D) B + C + D + E + F
The major criticism of real business cycle models is
A) negative technology shocks are uncommon and can’t explain all business cycle
fluctuations.
B) positive technology shocks actually push real GDP above the economy’s potential
GDP.
C) negative technology shocks actually push real GDP below the economy’s potential
GDP
D) this model relies too heavily on monetary explanations for fluctuations in real GDP.
Compensating differentials are associated most closely with which of the following?
A) hazardous jobs
B) comparable worth
C) economic discrimination
D) differences in education
The decision about what goods and services will be produced made in a market
economy is made by
A) lawmakers in the government voting on what will be produced.
B) workers deciding to produce only what the boss says must be produced.
C) producers deciding what society wants most.
D) consumers and firms choosing which goods and services to buy or produce.
E) consumers dictating to firms what they need most.
If labor productivity growth slows down in a country, this means that the growth rate in
________ has declined.
A) labor force participation
B) the quantity of goods or services that can be produced by one hour of work
C) the working-age population
D) nominal GDP
Compared to the United States, health care spending per person in other high-income
countries has been
A) growing at a slower rate.
B) growing at a faster rate.
C) growing at approximately the same rate.
D) declining at approximately the same rate.
If the economy is producing at potential GDP,
A) unemployment is at its natural rate.
B) the Phillips curve must be positively sloped.
C) the short-run aggregate supply curve must be vertical.
D) inflation in the economy is at its natural rate.
Figure 5-15 Figure 5-15 shows
the market for Atlantic salmon, a common resource. The current market equilibrium
output of Q1 is not the economically efficient output. The economically efficient output
is Q2. The current market equilibrium output is partly the result of overfishing. In that
case, what does S2 represent?
A) the private marginal benefit of harvesting salmon
B) the social marginal benefit of harvesting salmon
C) the private marginal cost of harvesting salmon
D) the social marginal cost of harvesting salmon
Figure 23-1
If the economy is at a level of aggregate expenditure given by point K,
A) the economy is in equilibrium.
B) production is greater than spending.
C) production is less than spending.
D) inventories will increase above their desired level.
Figure 12-6 Figure 12-6 shows the
demand, marginal cost (MC) and average total cost (ATC) curves for Jason’s House of
Apples. Which of the following statements is true?
A) Jason should produce where MC equals $3 (point d), where he will minimize his
losses.
B) Jason should produce where the distance between MC and his demand curve is
greatest (point ).
C) Jason cannot earn a profit from selling any number of apples.
D) Jason should produce where MC equals $3 (point d), where he will maximize his
profit.
The “Buy American” provision in the 2009 stimulus package required that stimulus
money be spent only on U.S.-made goods, effectively acting as a quota of zero imports
when stimulus money was being spent. In the market for steel, the “Buy American”
provision would ________ the price of steel in the United States and ________ the
quantity of steel demanded in the United States.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
A firm should hire more workers to increase its profits if
A) the marginal product of labor is greater than the wage the firm will pay these
workers.
B) the wage rate is less than the marginal revenue product of labor.
C) there is enough capital and other resources for the workers to use.
D) the demand for labor is elastic.