Refer to Table 3.1 to answer the following questionTable 3.1 Individual Demand and Supply SchedulesQuantity Demanded byPriceAlejandroBenCarlMarket$8.00842________6.001244________4.002046________2.002246________Quantity Supplied byPriceAveryBrandonCassandra $8.006046________$6.004244________$4.002442________$2.00640________In Table 3.1, if the price is $4, the market will
A. Experience a surplus of 56 units.
B. Experience a shortage of 22 units.
C. Experience a surplus of 30 units.
D. Be in equilibrium.
Answer: D
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Assume that a tariff is imposed on an imported product. The difference between the domestic price and the world price is captured by
A. domestic producers. B. the government. C. foreign exporters. D. domestic consumers.
Economists believe the free rider problem is very important in complex business organizational structures. Still, businesses continue to build teams to solve problems or to deliver products to consumers. Often special rewards or bonuses are provided to the team rather than to the individuals in the team. Write a brief essay that either defends the economists' concern or explains why economists are wrong on this issue.
What will be an ideal response?
Suppose Ben owns a small company that makes kites. The market for kites is perfectly competitive, and kites sell for $25 each. Ben's total production costs vary depending on the number of kites he makes each day, as shown in the accompanying table. Number of kites Per DayTotal Cost Per Day ($)0100111021263148417252006235 What is the profit-maximizing number of kites for Ben to make each day?
A. 0 B. 3 C. 5 D. 4
An increase in aggregate demand in the classical range of the aggregate supply curve will
A. increase the price level, but not affect the real domestic output. B. increase real domestic output, but not affect the price level. C. decrease both real domestic output and the price level. D. increase both real domestic output and the price level.