The above figure shows the market for game day t-shirts. If the price of t-shirts is $12, then
A) the market is in equilibrium.
B) there is a surplus and the price of t-shirts will fall.
C) there is a shortage and the price of t-shirts will fall.
D) there is a shortage and the price of t-shirts will rise.
E) there is a surplus and the price of t-shirts will rise.
B
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Refer to the table below. If the profit for each unit of paper product is $3.00 and the profit for each unit of lumber is $13.50, what is Big Oaks' marginal cost of producing between points B and C on their production possibilities frontier?
Big Oaks can produce either paper products or lumber with each tree that they harvest. Because Big Oaks can adjust the amount of paper products and lumber they produce from the harvested trees, paper products and lumber are produced in variable proportions. The above table summarizes Big Oaks production possibilities from each harvested tree.
A) $5.75
B) $3.75
C) $1.25
D) $7.50
The production possibilities frontier cannot be used to show
A. scarcity in a society. B. the trade-offs involved in production decisions. C. the unequal distribution of resources among the members of society. D. All of the responses are correct.
What are trade adjustment assistance programs?
A. Away of subsidizing exports B. Attempts to compensate those who suffer losses when trade restrictions are reduced C. The use of exchange rate policies to equalize exports and imports D. A form of regulatory trade restriction
Other things being equal, demand is more elastic if
A) the good is less expensive the good. B) the time period for adjustment is shorter. C) a family spends a larger percentage of its budget on the good. D) the good is more unique.