If the price of garbage removal rises, people will
a. demand a lesser quantity of garbage removal.
b. take more waste to recycling centers.
c. repair broken items rather than throwing them out.
d. All of the above are correct.
Which of the following is not held constant along a demand curve for labor by a firm?
a. the firm’s technology of production
b. the price of the firm’s output
c. the marginal product of labor for the firm
d. the price of substitutes for the firm’s output
The cost of production on the “bottom forty” is $100,000 for a given size crop. On the
“north forty,” due to erosion of the soil, the cost is $150,000 If both are being farmed by
tenants, we would expect the rent on the “bottom forty” to be
a. $50,000 below the rent on the north forty.
b. $50,000 above the rent on the north forty.
c. different from that on the north forty by an indeterminable amount.
d. $50,000, and the rent on the north forty is $50,000.
Studies at Cornell University revealed that chickens grow 2 percent larger when a red
mitten is placed in their cage and Vivaldi is played in the coop. Resultant feed savings
are estimated at $60 million a year. In the chicken market, the
a. demand curve shifts to the right.
b. supply curve shifts to the right.
c. price will rise.
d. quantity sold will fall.
Studies have shown that in the 1980s the wage gap between college-educated workers
and those with high school education or less
a. decreased dramatically.
b. decreased slightly.
c. remained unchanged.
d. widened dramatically.
Each point on the demand curve is
a. demand for the product.
b. a quantity demanded at that price.
c. the amount that people want to buy.
d. the amount people want to buy at different income levels.
e. All of the above are correct.
Which requirement for perfect competition rules out trade associations or other
collusive arrangements in which firms work together to influence price?
a. Freedom of entry and exit.
b. Homogeneity of product.
c. Perfect information.
d. Numerous small firms and customers.
It is true of the demand side of the market for input pricing that
a. the same marginal productivity principle serves as the foundation for the demand
schedule for each type of input.
b. the demand schedule for one input cannot be determined independently of demand
schedules for other inputs.
c. the demand curve is the complete MRP curve.
d. any inward shift in demand for a commodity will result in outward shifts in the
demand curves for the inputs used to produce the commodity.
The tax treatment of corporate profit means that corporations
a. cannot profitably issue common stock.
b. choose investment opportunities more efficiently than do other types of firms.
c. limits the things in which corporations can invest.
d. can generally avoid paying federal taxes but not state taxes.
If the supply curve for housing has the normal positive slope, rent controls will likely
a. increase the amount of housing.
b. improve the quality of housing.
c. aggravate the housing shortage.
d. help low-income families find suitable housing.
e. increase the demand for housing.
All points on an indifference curve represent combinations of two goods that are
equally desirable to the consumer.
a. True
b. False
Figure 22-7
In Figure 22-7, CF has the same slope as BG. AB and CD are the production
possibilities of Pestoland and Pastaland, respectively. If both countries are given the
opportunity to trade at prices indicated by CF,
a. both will refuse trade.
b. both will agree to trade.
c. Pestoland will wish to trade, but Pastaland will not.
d. Pastaland will wish to trade, but Pestoland will not.
The short-run supply curve for a perfectly competitive firm is that portion of the MC
curve above the AVC curve.
a. True
b. False
Teenage unemployment rates tend to be substantially higher than the overall
unemployment rate.
a. True
b. False
The special privileges and obligations of corporations are defined by law
a. True
b. False