Which would cause an increase in the demand for product A?
a. A decrease in the price of a complementary product B
b. A decrease in the number of suppliers of product B
c. A decrease in the price of product A
d. An increase in the cost of producing product A
Answer: a. A decrease in the price of a complementary product B
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Refer to Common Property II. If the common property is privately owned, the amount of the good supplied equals
The following questions refer to the accompanying diagram, which shows the benefits and costs associated with the use of a common property.
a. QO
b. QC
c. zero.
d. none of the above.
What is the effect of diminishing returns to labor on the slope of the aggregate production function (where output is measured on the vertical axis and employment is measured on the horizontal axis)?
a. It implies that the slope of the curve increases as the number of workers employed increases. b. It implies that the slope of the curve becomes negative as the number of workers employed increases. c. It implies that the slope of the curve decreases (or becomes flatter) as the number of workers employed increases. d. It keeps the slope the same throughout. e. It has nothing to do with the slope of the aggregate production function.
If personal income taxes are increased, disposable income and consumption
a. increase. b. stay the same. c. decrease. d. change in an unpredictable direction.
If a monopolist sells 100 units at $8 per unit and realizes an average total cost of $6 per unit, what is the monopolist's profit?
a. $200 b. $400 c. $600 d. $800