In Figure 45.1, the profit that employers make from the work of their employees at the equilibrium wage-labor combination is ` 
Figure 45.1
A. OACL*.
B. ABC.
C. BW*C.
D. W*AC.
Answer: D
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Cost minimization is the process of making optimal use of all of the inputs whose quantities are
A. set in the short run. B. set in the intermediate run. C. set in the long run. D. variable in the short and long run.
If the government raised taxes and reduced government spending in order to reduce the budget deficit, monetary policy could accommodate this policy by
a. increasing money demand. b. increasing money supply. c. decreasing money supply. d. increase unemployment insurance.
Governments of market-oriented economies never tamper with the price mechanism
a. True b. False Indicate whether the statement is true or false
Explain the source of monopoly power for DeBeers’ Diamond Mine in South Africa, Microsoft (owned by Bill Gates), the American Medical Association (which licenses doctors), Polaroid’s Instant Picture Cameras, USAir (which owns virtually all the gates at the airport in Charlotte, North Carolina), and electric utilities.
What will be an ideal response?