Use the aggregate expenditures model and the following values to answer the next question. AMPCIGT$7500.5$1,000$1,000$500Determine the equilibrium level of consumption (find ?C) following a decrease in taxes from 500 to 400 (?T = -$100).
A. $2,900
B. $3,200
C. $3,100
D. $3,000
Answer: C
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Suppose the equilibrium wage rate for apricot pickers is $9.00 per hour in California and at that wage rate the equilibrium quantity of apricot pickers is 14,000. If the minimum wage is set at $7.50 per hour, then the
A) quantity of apricot pickers employed increases. B) quantity of apricot pickers employed decreases. C) quantity of apricot pickers employed does not change. D) wage rate for apricot pickers increases. E) some apricot pickers are unemployed.
Refer to the figure above. If the engineer spends his entire time producing computer programs, how many computer programs can he produce?
A) 12 B) 30 C) 45 D) 50
Cost-benefit analysis of international trade
A) is basically useless. B) is empirically intractable. C) focuses attention primarily on conflicts of interest within countries. D) focuses attention on conflicts of interest between countries. E) never leads to government intervention in international trade.
Suppose the log-linear demand for widgets is found to be
Ln(Q) = 1.5 - 2ln(p) According to this equation, a 10% increase in price will decrease Q by what percentage? What is the price elasticity of demand?