Why does producer surplus decrease as price decreases?
A. Producers sell less of the good while consumers buy even more of the good.
B. Consumers buy more of the good at the lower price.
C. Producers sell less of the good and receive less from the lower price.
D. Producers sell more of the good but receive less from the lower price.
Answer: C
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The distribution of money income can be represented graphically using
A) supply and demand diagrams. B) a Lorenz curve. C) a Keynesian curve. D) a Distribution curve.
Legislation that makes it illegal to require union membership as a condition of continuing employment is the
A) National Labor Relations Act. B) Wagner Act. C) Congress of Industrial Organizations. D) collection of right-to-work laws.
A grocery store hires cashiers and baggers. Cashiers earn $8 an hour; baggers earn $4 an hour. The manager, who wants to maximize the number of customers served given a fixed payroll, expects the following productivity from cashiers and baggers: 
Given the above information, with a payroll of $32 (per hour), how should the manager allocate this budget?
A. Hire three cashiers and two baggers B. Hire four cashiers and one bagger C. Hire two cashiers and four baggers D. Hire two cashiers and three baggers
Suppose that the inverse demand for a downstream firm is P = 150 ? Q. Its upstream division produces a critical input with costs of CU(Qd) = 5(Qd)2. The downstream firm's cost is Cd(Q) = 10Q. When there is no external market for the downstream firm's critical input, the net marginal revenue for the downstream firm is:
A. NMRd = 140 ? Q. B. NMRd = 140 ? 2Q. C. NMRd = 150 ? Q. D. NMRd = 150 ? 2Q.