Which would cause a leftward shift in the supply curve for telephone service?
a. A decrease in the price of telephones
b. An increase in the wage of telephone workers
c. An increase in consumer incomes in the economy
d. An improvement in telephone technology
Answer: b. An increase in the wage of telephone workers
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Post deregulation, airlines attempted to maintain their earlier profit levels by instituting price discrimination in such forms as advance purchase ticket restrictions and frequent-flyer mileage programs. These methods generally did not succeed in maintaining those profit levels
Indicate whether the statement is true or false
An expansionary monetary policy may be less effective than a restrictive monetary policy because ________.
A. commercial banks may not be able to find good loan customers B. fiscal policy always works at cross purposes with an expansionary monetary policy C. the Federal Reserve Banks are always willing to make loans to commercial banks that are short of reserves D. changes in exchange rates complicate an expansionary monetary policy more than they do a restrictive monetary policy
Which of the following types of goods is subject to the free-rider problem?
A) a private good B) a public good C) a product that creates a positive externality D) a product that creates a negative externality
Assume the total product of two workers is 80 and the total product of three workers is 90. The average product of three workers is ________, and the marginal product of the third worker is ________.
A. 160; 270 B. 10; 13.33 C. 30; 10 D. 10; 45