Assume the market in the graph shown with demand D and supply S1 is in equilibrium at a quantity of 5 units. Producer surplus is:
A. $5.
B. $10.
C. $15.
D. $7.50.
D. $7.50.
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Frictional unemployment is the result of
A) the economy entering a strong expansion. B) normal labor market turnover. C) a slowdown in the rate of economic expansion. D) changes in the weather. E) technological change or foreign competition.
Suppose the supply of textbooks is upward sloping and shifts leftward due to higher ink and paper costs. Which of the following events would leave the equilibrium price of textbooks at the same level observed before the supply shift?
A) Demand is perfectly elastic (horizontal). B) Demand is downward sloping and shifts leftward. C) all of the above D) none of the above
Which of the following is not an argument favoring tariffs? a. They help infant industries grow
b. They increase consumer surplus for domestic consumers. c. They reduce domestic unemployment. d. They are necessary for national security reasons.
As the interest rate increases, the opportunity cost of waiting to receive a future amount:
A. increases. B. remains the same. C. decreases. D. may rise or fall.