Refer to Figure 4-9. What is the area that represents producer surplus after the imposition of the price floor?
A) B + E + F B) A + B + E C) B + E D) B + C + D + E
C
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The value of marginal product (VMP) of an input such as labor is the
A) additional output produced by the last unit of an input. B) total revenue divided by the units of the input employed. C) extra revenue gained by selling one more unit of output. D) extra revenue gained by employing one more unit of the input.
Refer to Table 4-7. The equations above describe the demand and supply for Pauline's Pickled Pomegranates. What are the equilibrium price and quantity (in thousands) for Pauline's Pickled Pomegranates?
A) $20 and 10 thousand B) $60 and 20 thousand C) $15 and 45 thousand D) $30 and 15 thousand
The costs of inflation to firms due to reprinting price lists are known as
A) seigniorage. B) menu costs. C) velocity costs. D) shoe-leather costs.
Since people's incomes are limited and their abilities to borrow differ they face _____ constraints
a. psychological b. financial c. societal d. contractual