Refer to the above graph. If total costs increase and the price of oil stays at $60, then the firm will extract:
Use the following graph to answer question. It shows the extraction costs for TX Oil Company
in the first year in a situation where it will extract oil from a reserve over two years.
A. More oil the current year
B. Less oil the current year
C. Less oil in the next year
D. Make no change in oil production from one year to the next
B. Less oil the current year
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The figure above shows the demand for and supply of labor of students in Smallville. If the minimum wage is set at $4 per hour, how many hours do students work?
A) 12,000 hours B) 9,000 hours C) 6,000 hours D) None of the above answers is correct.
An increase in the cost of an input will result in
A) a leftward shift in the firm's supply curve. B) an upward shift of the firm's marginal cost curve. C) a leftward shift of the market supply curve. D) All of the above.
Ethan enjoys buying books and going to the movies. He has income of $150 to spend on these two goods each month. The price of a book is $15 and the price of going to the movies is also $15. He currently consumes four books and six movies a month. If the price of a book increases to $20, then:
A. the substitution and income effects would both predict Ethan would consume more of both goods. B. the substitution and income effects would both predict Ethan would consume less of both goods. C. the substitution effect would predict Ethan would consume more books and less movies, and the income effect would predict he would consume less of both. D. the substitution effect would predict Ethan would consume less books and more movies and the income effect would predict he would consume less of both.
Suppose y is measured on the vertical axis, x is on the horizontal axis, and the various combinations of x and y are shown by a nonvertical straight line. Which of the following must be true?
a. There is a negative relation between x and y. b. There is a positive relation between x and y. c. There is a causal relation between x and y. d. If the value of x is known, the value of y can be determined. e. The value of y is independent of the value of x.