Which of the following is irrelevant when deciding whether to undertake an action?
a. opportunity costs
b. implicit costs
c. sunk costs
d. implicit costs and explicit costs
e. fixed costs and implicit costs
C
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The law of demand refers to the
a. inverse relationship between the price of a good and the willingness of consumers to buy it. b. price increase that results from an increase in demand for a good of limited supply. c. inverse relationship between the price of a good and the quantity offered for sale. d. increase in the quantity of a good available when its price increases.
Workers often have ________ contracts and so their wages are ________.
A. long-term; flexible B. long-term; sticky C. short-term; sticky D. short-term; flexible
The graph above shows a small country that can import at the world price of Pw. Suppose that the government imposes a tariff of $T per unit (and suppose that this does not raise the domestic price so much that there will be no trade. Use the graph above to illustrate the effects of the tariff. Show the new areas of consumer surplus, producer surplus, and government revenue, and the deadweight
losses due to the tariff. Who wins and who loses from the tariff? What will be an ideal response?
If Tiger Toys faces a demand curve of P = 85 ? 0.25Q and a MC = ATC = 20, then the output would be
A. 65.0 units. B. 32.5 units. C. 85.0 units. D. 130.0 units.