Which of the following is most likely a constant cost industry?
a. coal
b. ice cream
c. lumber
d. oil
b
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Which of the following happens when an economy's labor demand curve shifts to the left without any change in its labor supply curve assuming all else equal?
A) The equilibrium wage rate rises. B) The output of the economy rises. C) The aggregate price level falls. D) The unemployment rate rises.
The economic justification for public subsidies to university research is based on the
A. value of this research to the university. B. higher salaries graduate students earn as a result of working with professors involved in research. C. external benefits of research and development to, in particular, high rates of economic growth. D. higher incomes earned by those who provide services to university researchers (equipment, supplies, etc.).
If the price of sugar changed in the market from 20 cents to 23 cents per pound, and Sunharvest Grocery Market didn't change the price it charges for the sugar, this behavior is likely due to
A. irrational expectations. B. large menu costs. C. discretionary policy. D. small menu costs.
If the price elasticity of demand for pineapples is greater than 1, an increase in pineapple prices will
A. lower total revenue. B. not affect total revenue. C. raise total revenue. D. either raise or lower total revenue, but it is impossible to determine which.