If there is a sole producer of a good, and he faces no threat of competition, it is likely that:
A. government intervention will have no impact on the market.
B. government intervention will increase total surplus.
C. government intervention will make things better for buyers and sellers.
D. government intervention will raise prices to consumers.
Answer: B
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An increase in the cost of training to acquire a skill, which must be paid by the worker,
a. increases both the supply of and demand for labor in that market b. decreases both the supply of and demand for labor in that market c. increases the supply of labor and decreases the demand for labor in that market d. decreases the supply of labor and increases the demand for labor in that market e. decreases the supply of labor only in that market
If Hector's marginal rate of substitution between pens and pencils is constant, regardless of how many pens and pencils he has, then his indifference curves
a. are right angles. b. are straight lines. c. slope upward. d. cross one another at certain points.
Assets that a company might not be able to convert to cash quickly but that still have significant value (e.g., factory building, real estate, machinery) are known as
a. liquid assets b. hard assets c. corporate assets d. marketable securities e. none of these
The most commonly used price index to track changes in prices for the typical household in the U.S. is:
A. producer price index. B. retail price index. C. consumer price index. D. average price index.