Suppose the price of a product is $4 and the nominal wage that the firm must pay is $20. Then the firm's real wage is
A) $5. B) $0.20. C) $4. D) $20. E) $80.
A
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Refer to Figure 4-1. Arnold's marginal benefit from consuming the third burrito is
A) $1.25. B) $1.50. C) $2.50. D) $6.00.
What were the three shocks that the U.S. economy experienced during 2007-2009, and how did these shocks affect the IS curve, the MP curve, and the Phillips curve?
What will be an ideal response?
Which of the following is not a potential drawback to public provision of public goods?
a. Public provision lacks clear signals about the value of the good being produced, possibly leading to under and over provision of the goods. b. Many collective consumption goods might be overproduced private goods. c. Public provision often implies taxation, which creates an excess burden that might overwhelm any efficiency gains. d. Many collective consumption goods are really impure private goods and thus the efficient level of output is never reached.
A sudden rise in the market demand in a competitive industry leads to
a. A short run market equilibrium price higher than the original equilibrium b. A market equilibrium lower than the short run price c. Entry of new firms into the market d. All of the above