Consider the market for grapes. An increase in the wage paid to grape pickers will cause the
a. demand curve for grapes to shift to the right, resulting in a higher equilibrium price for grapes and a reduction in the quantity consumed.
b. demand curve for grapes to shift to the left, resulting in a lower equilibrium price for grapes and an increase in the quantity consumed.
c. supply curve for grapes to shift to the left, resulting in a lower equilibrium price for grapes and a decrease in the quantity consumed.
d. supply curve for grapes to shift to the left, resulting in a higher equilibrium price for grapes and a decrease in the quantity consumed.
D
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On a graph, an upward-sloping curve that is flatter as you move away from the origin indicates a
A) positive relationship with an increasing slope. B) positive relationship with a decreasing slope. C) negative relationship with an increasing slope. D) negative relationship with a decreasing slope.
In the simple deposit expansion model, a decline in checkable deposits of $500 when the required reserve ratio is equal to 20 percent implies that the Fed
A) sold $250 in government bonds. B) sold $100 in government bonds. C) sold $50 in government bonds. D) purchased $100 in government bonds.
All of the payment to a factor of production will be economic rent when the factor of production has:
A) an infinitely inelastic supply curve. B) an infinitely elastic supply curve. C) a constant, unit elastic supply curve. D) an infinitely inelastic demand curve.
Suppose that the inverse demand for a downstream firm is P = 150 ? Q. Its upstream division produces a critical input with costs of CU(Qd) = 5(Qd)2. The downstream firm's cost is Cd(Q) = 10Q. When there is no external market for the downstream firm's critical input, the marginal revenue for the downstream firm is:
A. MRd(Q) = 140 ? Q. B. MRd(Q) = 150 ? 2Q. C. MRd(Q) = 150 ? Q. D. MRd(Q) = 140 ? 2Q.