Look again at the figure The Market for Sandwiches. How much total surplus would be lost if there were a quota of only eight sandwiches that could be legally exchanged at a price of $5?
A) $3
B) $72
C) $27
D) $32
Answer: A) $3
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Aside from being a means of payment, the other functions of money are
A) medium of exchange and the ability to buy goods and services. B) medium of exchange, unit of account, and means of lending. C) pricing, contracts, and store of value. D) medium of exchange, unit of account, and store of value.
According to the Index of Economic Freedom, which of the following is the freest economy in the world?
a. Cuba b. Zimbabwe c. Hong Kong d. North Korea e. Libya
The manufacturing unit of a local LED bulb producing company reports a daily output of 450 bulbs with 50 units of labor. When the 51st worker is hired, production increases to 475 bulbs, and when the 52nd worker is hired, production increases to 490 bulbs. This is an example of: a. a deadweight loss
b. decreasing returns to scale. c. diminishing marginal returns. d. a decrease in labor demand.
In the late 1960s, Milton Friedman and Edmund Phelps argued that
a. the trade-off between inflation and unemployment did not apply in the long run This claim is consistent with monetary neutrality in the long run. b. the trade-off between inflation and unemployment did not apply in the long run. This claim is inconsistent with monetary neutrality in the long run. c. the trade-off between inflation and unemployment applied in both the short run and the long run. This claim is consistent with monetary neutrality in the long run. d. the trade-off between inflation and unemployment applied in both the short run and the long run. This claim is inconsistent with monetary neutrality in the long run.