Figure 4-19
Refer to . When the price ceiling applies in this market and the supply curve for gasoline shifts from S1 to S2,
a.
the price will increase to P3.
b.
a surplus will occur at the new market price of P2.
c.
the market price will stay at P1 due to the price ceiling.
d.
a shortage will occur at the price ceiling of P2.
d
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Total planned expenditures for domestically produced goods and services consist of
A) consumer spending, business spending, government spending, and net export spending. B) consumer spending, business spending, government spending, and import spending. C) consumer spending, business spending, and net export spending only D) government spending, business spending, and import spending only.
When buying a car from a commission salesman you improve your bargaining position by
a. shopping when the new model year cars have just arrived b. shopping when the showroom is empty of customers c. shopping when the car lot has few cars left unsold d. shopping toward the beginning of the month
Refer to Cost of Production. The short-run average cost of producing 50 units of output per week is
The following questions refer to the diagram below. The wage rate is assumed to be $12 per hour, the rental rate is assumed to be $6 per hour, and capital is assumed to be fixed in the short run at 10 hours.
a. $3 per unit.
b. $3.60 per unit.
c. $5 per unit.
d. $2.77 per unit.
A downward-sloping demand curve
a. is a feature of all monopolistically competitive firms. b. means that the firm in question will never experience a zero profit. c. causes marginal revenue to exceed price. d. prohibits firms from earning positive economic profits in the long run.