Suppose a new technology allows firms to substitute mechanical flower pickers for farm laborers. As a result, the demand curve for farm laborers will
A) become less elastic.
B) become more elastic.
C) shift to the right.
D) not be affected.
Answer: B
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From 1970 to 2007 the quantity of M1 fell from 20 percent of GDP to less than 10 percent. This change is because the ownership of credit cards ________ during this time period since ________
A) expanded from 18 percent to 76 percent; credit cards became more widely available and utilized B) expanded from 18 percent to 76 percent; there were several recessions during that period C) fell from 76 percent to 18 percent; credit cards became less widely available and utilized D) remained unchanged; credit cards do not affect the quantity of money E) fell from 76 percent to 18 percent; there were several recessions during that period
Compared to perfectly competitive firms, the demand curve for a monopolist will be
A) as elastic. B) more elastic. C) less elastic. D) perfectly elastic.
In a progressive tax system
A. the marginal tax rate and the average tax rate decrease as income levels increase and the marginal tax rate is less than the average tax rate. B. the marginal tax rate and the average tax rate increase as income levels increase and the marginal tax rate exceeds the average tax rate. C. the marginal tax rate increase as income increases but the average tax rate does not change as income increases. D. the marginal tax rate and the average tax rate are the same for every income level and the same as income increases.
In the above figure, total revenue for this profit-maximizing monopolistically competitive firm is
A. $96,000. B. $91,000. C. $50,000. D. $100,000.