The purely competitive employer of resource A will maximize the profits from A by equating the:
A. price of A with the MRP of A.
B. marginal productivity of A with the MRC of A.
C. marginal productivity of A with the price of A.
D. price of A with the MRC of A.
Answer: A
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If the demand and supply both increase equally, then the equilibrium price ________, and the equilibrium quantity ________
A) increases; increases B) does not change; increases C) decreases; does not change D) increases; does not change E) increases; decreases
Refer to Table 9-11. If the actual terms of trade are 1 hat for 1.8 clocks and 150 hats are traded, how many hats will Belize consume?
A) 100 B) 130 C) 250 D) 400
Refer to the above figure. Medicare subsidies have increased the price of medical services to Ps. Which of the following statements is TRUE about the effect the Medicare subsidy has had on the consumption of medical services?
A) The amount of medical services provided has decreased from Q0 to Qd as a result of the subsidy. B) The amount of medical services provided has increased from Q0 to QM as a result of the subsidy. C) The amount of medical services provided has increased from Qd to QM as a result of the subsidy. D) The amount of medical services provided has remained unchanged as a result of the subsidy.
At prices below a consumer's willingness to pay:
A. the buyer will participate in the market because the opportunity cost is less than the benefit from consuming the good. B. the buyer will participate in the market because the opportunity cost is more than the benefit from consuming the good. C. the buyer will not participate in the market because the opportunity cost is less than the benefit from consuming the good. D. the buyer will not participate in the market because the opportunity cost is more than the benefit from consuming the good.