A microeconomic model CANNOT be used to
A) evaluate the impact of a price change on a firm's revenue.
B) predict the impact of an increase in the minimum wage on unemployment.
C) evaluate the fairness of a proposal to nationalize health insurance.
D) evaluate the effect of an increase in stadium size on the price of a sport team's tickets.
C
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The goal of product differentiation and advertising in monopolistic competition is to make
A. price more of a factor and product differences less of a factor in consumer purchases. B. price less of a factor and product differences more of a factor in consumer purchases. C. the firm productively efficient even if it is not allocatively efficient. D. the firm allocatively efficient even if it is not productively efficient.
An order from an exchange for a seller to add enough funds to meet the minimum balance in a margin account is called:
A) maintenance margin B) margin option C) margin call D) margin put
According to basic supply and demand analysis, when hurricane Katrina caused oil prices to rise, what happened to the equilibrium price and quantity of sport utility vehicles?
A. Equilibrium price and quantity both increased. B. Equilibrium price and quantity both decreased. C. Equilibrium price increased, and equilibrium quantity decreased. D. Equilibrium price decreased, and equilibrium quantity increased.
According to the HeckscherOhlin model, international trade for a nation with a relative abundance of skilled labor and a relative scarcity of unskilled labor will tend to
a. widen or aggravate the income disparity between skilled and unskilled workers. b. reduce the income disparity between skilled and unskilled workers. c. lower the wages of both groups of workers. d. raise the wages of both groups of workers.