Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If 4,000 pounds of pecans are sold
A) marginal benefit is equal to marginal cost.
B) consumer surplus equals zero.
C) the deadweight loss is equal to $12,000.
D) the marginal benefit of each of the 4,000 pounds of pecans equals $3.
C
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Economic growth causes the
A) production possibilities curve to shift rightward and the long-run aggregate supply curve to shift rightward. B) production possibilities curve to shift leftward and the long-run aggregate supply curve to shift rightward. C) production possibilities curve to shift rightward and the long-run aggregate supply curve to shift leftward. D) production possibilities curve to shift leftward and the long-run aggregate supply curve to shift leftward.
Suppose workers at the bakery discover that a new firm making baseballs came to town and is offering higher wage rates. What will happen in the labor market for bakers?
a. The labor supply curve will shift to the right. b. Demand for bakers will increase because the MPP of bakers will decrease. c. The quantity supplied of labor will increase because the wage rate will decrease. d. The MRP of bakers will increase. e. The labor supply curve will shift to the left.
Change in Quantity Demanded
What will be an ideal response?
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.