Refer to the graph shown. In a perfectly competitive industry, price would:
A. equal $16.
B. equal $12.
C. be greater than $16.
D. be less than $12.
Answer: B
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Suppose that Joan, the only consumer of pork, has a downward-sloping demand curve for pork and faces an upward-sloping supply curve. If her demand curve shifts out because she develops a craving for pork, then at the new equilibrium (everything else equal),
A. the price of pork relative to other goods will be higher than before. B. Joan’s marginal utility from every unit of pork she eats will be higher than before. C. Joan’s real income will be lower than before. D. All of the responses are correct.
In the above table, if the firm sells 5 units of output, its total revenue is
A) $15. B) $30. C) $75. D) $90.
The income that includes a household's earnings in addition to cash transfers from the government is called
A) market income. B) real income. C) money income. D) cash income.
The amount of foreign aid in proportion to developed countries' GNP has
(a) increased over time. (b) remained fairly stable over time. (c) decreased over time. (d) fluctuated widely but has shown no clear trend.