A movement along the demand curve for automobiles is caused by a change in:
A. the price of automobiles.
B. the price of gasoline.
C. the price of steel.
D. consumers' incomes.
Answer: A
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Pennsylvania's largest grower of fresh-to-market tomatoes announced in March 2009 he will no longer produce the crop. The acreage he previously devoted to tomatoes and pumpkins will be converted to field corn that is harvested by machines
Of the following, which could have led to the shift from labor intensive tomato production to field corn? A) The market price of tomatoes increased. B) Farm workers' reservation wage fell. C) The wage rate for farm workers increased. D) All of the answers are true.
Suppose Lydia owns the only lawn-mowing business in the small town of Pleasant Pastures. There are 8 people each week whose lawns she might cut, each with a reservation price given in the accompanying table. Assume that the marginal cost of mowing each lawn is constant and equal to $25. CustomerReservationPriceA$36B$34C$32D$30E$28F$26G$24H$22If Lydia charges the same price to all of her customers, then how many lawns should she mow each week?
A. 2 B. 4 C. 5 D. 3
John Doe participates in a welfare program which pays him $6,000 dollars. He can work but he loses 50 cents of the welfare check for every dollar he earns over $5,000. How much wage income will he have to earn to escape poverty if the poverty line for him is $17,000 per year?
A. $17,000 B. $11,000 C. $12,000 D. $14,000
Refer to the diagram. A decrease in demand is depicted by a:
A. move from point x to point y.
B. shift from D 1 to D 2 .
C. shift from D 2 to D 1 .
D. move from point y to point x.