A technological advancement has just occurred in the computer chip industry. In the computer chip market this will lead to
A. an increase in price and a decrease in quantity.
B. an increase in price and an increase in quantity.
C. a decrease in price and a decrease in quantity.
D. a decrease in price and an increase in quantity.
Answer: D
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Refer to Table 4-8. Suppose that the quantity of labor supplied increases by 40,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?
A) W = $9.00; Q = 410,000 B) W = $9.50; Q = 420,000 C) W = $8.00; Q = 390,000 D) W = $8.50; Q = 400,000
Economic theory
a. expresses normative values b. invents imaginative and interesting stories c. predicts the behavior of a specific economic decision maker after an economic change d. predicts the average behavior of a group of similar economic decision makers after an economic change e. uses only perfect and complete information
An increase in the price level is likely to increase the aggregate amount of output supplied in the short run because
A. wages change in the short-run. B. wages are sticky in the short-run. C. the aggregate supply curve is vertical in the short-run. D. interest rate is high in the short-run.
If total utility has reached a maximum level, and assuming that diminishing marginal utility already applies, then what will happen as the consumer consumes additional units of the product?
A. Marginal utility of the additional units will be greater than zero B. Total utility will turn negative C. Marginal utility of the additional units will turn negative D. Total utility will increase at a diminishing rate