Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive.
If S3 is the market supply curve, then each firm in this market will earn an economic loss of ________ per week.
A. $3,000
B. $1,000
C. $1,500
D. $2,000
Answer: D
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If growing income inequality results from changes in technology that, as a whole, make society better off, this will
A) increase the size of the economic pie. B) decrease the size of the economic pie because of the income inequality. C) not change the size of the economic pie because the positive technology changes will be offset by the increases in income inequality. D) result in complete income inequality as technology continues to change in the future.
For a common resource, the marginal private cost curve slopes ________ and the marginal social cost curve slopes ________
A) upward; upward B) upward; downward C) downward; upward D) downward; downward
The table above represents five points on the production possibility frontier for the small country of Baca, which produces only rugs (measured in thousands) and wheat (measured in thousands of bushels): Does the production possibility frontier
demonstrate the law of increasing opportunity cost? How can you tell?
In the above figure, if the union has Q2 members and wants to ensure that all members have jobs, it will set wage equal to
A) W1. B) W2. C) W3. D) none of the above.