At Joey's Lawncutting Service, a lawn mower cannot cut grass without a laborer. A laborer cannot cut grass without a lawn mower
Which graph in the above figure best represents the isoquants for Joey's Lawncutting Service when capital per day is on the vertical axis and labor per day is on the horizontal axis? A) Graph A
B) Graph B
C) Graph C
D) Graph D
A
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Joe has been unable to find a job because he lacks the necessary computer skills. Joe is
A) cyclically unemployed. B) skill-set unemployed. C) frictionally unemployed. D) structurally unemployed. E) educationally unemployed.
During 2008 the supply of gasoline decreased while at the same time the demand for gasoline increased If the magnitude of the increase in demand was greater than the magnitude of the decrease in supply, then the equilibrium price of gasoline ________ and the equilibrium quantity ________.
A) increased; increased B) increased; decreased C) increased; did not change D) decreased; did not change E) did not change; increased
Why do investors hedge using futures contracts?
A) they are seeking to increase liquidity B) they are willing to pay for a reduction in risk C) in order to provide a counterparty to speculators D) they are more flexible than forward contracts
If a Pigovian tax is levied on consumers, the demand curve will shift:
A. straight up, decreasing quantity. B. straight down, decreasing quantity. C. straight down, increasing quantity. D. straight up, increasing quantity.