Suppose televisions are a normal good and buyers of televisions experience a decrease in income. As a result, consumer surplus in the television market
a. decreases.
b. is unchanged.
c. increases.
d. may increase, decrease, or remain unchanged.
d
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Missouri can produce 10,000 tons of pecans per year or 5,000 tons of pears per year. Washington can produce 12,000 tons of pecans per year or 48,000 tons of pears per year. Which of the following statements about opportunity cost is CORRECT?
A) The opportunity cost of a ton of pecans is 2 tons of pears per ton of pecans for Missouri and 1/4 ton of pears per ton of pecans for Washington. B) The opportunity cost of a ton of pears is 2 tons of pecans per ton of pears for Missouri and 1/4 ton of pecans per ton of pears for Washington. C) The opportunity cost of a ton of pecans is 1/2 ton of pears per ton of pecans for Missouri and 4 tons of pears per ton of pecans for Washington. D) Both answers B and C are correct.
Patents encourage invention by
A) offering subsidies to inventors. B) offering tax breaks to inventors. C) allowing patent owners to make an economic profit. D) preventing inventors from working on the same project.
The labor force participation rate is
a. the civilian labor force as a percentage of the civilian non institutional population. b. the non institutional population as a percentage of the total labor force. c. the civilian labor force as a percentage of the total labor force. d. employed workers as a percentage of the civilian non institutional population.
Two reasons why a few individuals earn very high pay in the sports and entertainment fields are that their
a. marginal productivity is high and entry into those industries is restricted b. marginal productivity is high and the cross-elasticity of demand between their services and the services of other employees is also high c. marginal productivity is high and there is open competition for their talents d. wage elasticity of supply is high and there is open competition for their talents e. marginal productivity is high and they are prohibited from changing employers