Prices can work to benefit the public interest by
A. raising corporate profit levels.
B. improving the fairness of the distribution of income.
C. allowing government to regulate the economy.
D. allocating scarce resources to those who value the resource the most.
Answer: D
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A worldwide hops (a flowers used in brewing) shortage made stouts, ales and other specialty microbrews more pricy in 2008. A triple whammy of bad weather in Europe, an increase in the price of barley and a decrease in hops production in the U.S
led to a price increase of 20 percent for the most widely grown varieties, to 80 percent for specialty hops. What is the effect of this hops shortage on a microbrewery's cost curves? A) Short run fixed costs would increase. B) Short run total costs would decrease. C) Short run average variable costs would decrease. D) Short run variable costs would increase.
Typically, as an economy begins to emerge from a recession,
A) unemployment falls immediately. B) inflation begins to fall. C) unemployment continues to rise. D) investment begins to fall.
Table 11-2 QTRTC89590910293 10110100 11112105 12115110 ? In Table 11-2, the price at the profit-maximizing output is how much?
A. $15 B. $7 C. $10 D. $11
Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. Calculators Per HourComputers Per HourSmith10010Jones1206 If Smith and Jones are dividing their time efficiently and producing fewer than 10 computers and more than 120 calculators per hour, then Smith will ________ and Jones will ________.
A. produce only computers; produce only calculators B. split his time between computers and calculators; produce only calculators C. produce only calculators; split his time between computers and calculators D. produce only calculators; produce only computers