Refer to Exhibit 2-4. This economy is productive
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efficient, if it operates at point A or D.
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Figure 4.2 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $10, we would expect that
A) price will increase until quantity demanded equals quantity supplied. B) demand will decrease until quantity demanded equals quantity supplied. C) supply will increase until quantity demanded equals quantity supplied. D) there will be no change in the price since the market is in equilibrium.
When the real wage is below the equilibrium price in the labor market ________
A) we have an excess supply of labor and the real wage should fall B) we have an excess demand of labor and the real wage should fall C) we have an excess demand of labor and the real wage should increase D) we have an excess supply of labor and the real wage should increase E) none of the above
Table 10-2 ? Firm A Firm B Firm C Firm D Total revenue (TR) $ 100 150 100 100 Total variable cost (TVC) 180 160 60 140 Short-run nonvariable cost 60 20 60 100 ? Refer to Table 10-2. Which firm is better off staying in business in the short run?
A. Firm A B. Firm B C. Firm C D. Firm D
Why did rising housing prices from 2001 to 2006 encourage lenders to give mortgages even to people they thought would default?
a. Lenders felt the government would pay for any losses they suffered from defaults. b. Lenders felt credit was so easy to obtain that customers in default could easily get more financing. c. Lenders felt that if borrowers defaulted that would leave the lenders with houses that were worth more than they had been owed. d. Lenders felt that regulations would soon change to help people facing foreclosure and prevent defaults.