Refer to the information provided in Figure 28.1 below to answer the question(s) that follow.
Figure 28.1Refer to Figure 28.1. According to classical economists, if the wage rate is $15 the wage rate will ________ to eliminate the ________.
A. increase; surplus
B. decline; surplus
C. increase; shortage
D. decline; shortage
Answer: B
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Figure 5-17
In Figure 5-17, which of the marked points would an economist use to help him construct a single demand curve for X?
A. A and B B. C and D C. A and C D. A and D
Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tracy 6 minutes to make a sandwich and 12 minutes to make a smoothie. Which of the following statements is correct?
A. Dan should specialize in sandwiches, and Tracy should specialize in smoothies. B. Dan should specialize in both sandwiches and smoothies. C. Dan should specialize in smoothies, and Tracy should specialize in sandwiches. D. Tracy should specialize in sandwiches and smoothies.
The actual and cyclically adjusted budgets will be equal when:
A. the rate of inflation is zero. B. the economy is at full employment. C. taxes have no effect on fiscal policy. D. the balanced-budget multiplier is 1.
In a monopolistically competitive market, there:
A. are many firms selling an identical product. B. is only one firm that sells many similar yet slightly different products. C. are many firms that have slight control over the price they charge for their product. D. are substantial barriers to entry.