Suppose you were to hear an economist defend the minimum wage on the grounds that she estimated the productivity of workers both before and after an increase in the minimum wage and found that the increase in the minimum wage increases productivity by more (on a percentage basis) than it increased costs. You would know her to be relying on the ________ argument.
A. macroeconomic
B. work effort
C. consumer and producer surplus
D. elasticity
Answer: B
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At the current point of production on a nation's production possibilities frontier, the marginal benefit of a slice of pizza is 500 tacos per slice of pizza while the marginal cost of producing a slice of pizza is 750 tacos per slice of pizza
To be allocatively efficient, what should be done?
Deadweight loss results from a misallocation of resources
a. True b. False Indicate whether the statement is true or false
In the short run, a perfectly competitive firm may earn economic profits that are
a. positive. b. positive but very small. c. negative. d. all of the above.
Quick Buck and Pushy Sales produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. 
Suppose Quick Buck and Pushy Sales decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price. If Quick Buck cheats by reducing its price to $1 while Pushy Sales continues to comply with the collusive agreement, then Quick Buck will sell ________ units and Pushy Sales will sell ________ units.
A. 3,000; 0 B. 3,000; 1,000 C. 2,000; 1,000 D. 0; 3,000