Refer to the above figure. If a price floor of $5 was set
A. the quantity sold would be 80 units.
B. there would be a shortage of 20 units.
C. the quantity demanded would be 100 units.
D. the quantity sold would be 60 units.
Answer: D
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The figure above shows the production possibilities frontiers for the United Kingdom and France. What is the opportunity cost of one bushel of wheat for the United Kingdom?
A) 1/4 of a pound of fish B) 1/2 of a pound of fish C) 1 pound of fish D) 200 pounds of fish E) 2 pounds of fish
A firm should continue producing until
A) the cost of producing the output equals the revenues obtainable from selling the output. B) the cost of increasing output by one more unit equals the revenues obtainable from selling the extra unit. C) average costs are at a minimum. D) the average cost when another unit is produced equals the average revenue obtainable from selling the extra unit.
Which of the following activities would be included in GDP?
A. Your roommate pays you $40 to clean the house. B. Your parents send you $40 to hire a house cleaner, and you clean the house and keep the $40 yourself. C. You hire a cleaning service at $40 to clean your house. D. All of these would be included in GDP, since there was a monetary exchange.
Did President Obama’s $787 billion fiscal stimulus package of early 2009 work? Name several facts in support of the proposition that it did. Also, list the arguments of the skeptics.
What will be an ideal response?