Figure 11-1
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In Figure 11-1, what can be concluded about the economy if production moves from Point D to Point A?
A. An improvement of calculator technology
B. An increase in resources for producing other goods
C. A reduction in the need for calculators in the economy
D. A more equal distribution of resources in the economy
Answer: C
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Refer to the above table. If the price of the product is $1.50, and the marginal factor cost of an additional unit of an input is $135, how many units of labor should be hired?
A) 11 B) 12 C) 13 D) 14
Figure 10-8
The economy depicted in is in
a. short-run equilibrium at less than the full-employment output level.
b. short-run equilibrium at an output level beyond full employment.
c. long-run equilibrium at point a.
d. long-run equilibrium at point b.
Refer to the accompanying figure. Suppose a consumer protection group convinces the government to impose price controls in this market. If the government requires cheese to be sold for less than the equilibrium price, then, relative to before the price controls, total consumer surplus in the market:
A. would increase because consumers would be able to purchase more cheese at a lower price. B. would increase because consumers would be able to purchase the same quantity of cheese at a lower price. C. would decrease because of the reduction in equilibrium price. D. could either increase or decrease.
Economists played a key role in the development of merger guidelines by the Department of Justice and the Federal Trade Commission in 1982. These guidelines have three main parts. What are these parts?
A) concentration ratios; the Herfindahl-Hirschman Index; market standards B) concentration standards; concentration ratios; competitive analysis C) economic analysis; political analysis; dynamic analysis D) market definition; measure of concentration; merger standards