Milky Moo and Mega Cow are the only sellers of milk. Milky Moo's supply function is QsMMoo = 12P - 6 at prices above $0.50 and zero at prices below $0.50. Mega Cow's supply function is QsMCow = 9P - 3 at prices above $0.33 and zero at prices below $0.33. At a price of $2.00, the market supply of milk is:
A. QsMarket = 12P - 6.
B. QsMarket = 9P - 3.
C. QsMarket = 21P - 9.
D. QsMarket = 12P - 9.
C. QsMarket = 21P - 9.
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In a typical college classroom without a seating chart, dozens of students nevertheless occupy classroom seats with a minimum of confusion and disorder. Economics explains the orderly process of seat selection by assuming students
A) engage in entirely random decisions, from which only divine intervention can generate order in the classroom. B) follow a simple, perhaps even unwritten, rule, such as "seats belong to the person who first occupies them." C) know all the consequences of their actions, and thus purposefully create an orderly classroom seating assignment even if the professor doesn't require one. D) trick question: economics cannot deduce any sensible scientific claims about the behavior of college students.
What effect does the payment of government unemployment insurance have on the unemployment rate?
What will be an ideal response?
Refer to Figure 10-3. Which of the following is consistent with the graph depicted above?
A) The government runs a budget deficit. B) An expected recession decreases the profitability of new investment. C) Taxes are changed so that real interest income is taxed rather than nominal interest income. D) Technological change increases the profitability of new investment.
Public policy, without intending to do so, can increase frictional unemployment
a. True b. False Indicate whether the statement is true or false