Vicky currently produces at point a in the figure above. If Vicky moves from point a to point b to point c, her opportunity cost of a modem ________
A) decreases
B) increases
C) is zero
D) remains the same
D
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Assume wages paid by a firm to its workers decrease. What will be the reaction of consumers as the market moves to its new equilibrium?
A) Quantity demanded will decrease. B) Quantity demanded will increase. C) The demand curve will shift to the left. D) There will be no reaction by consumers, since input prices determine supply, not demand.
Actual expenditure is to planned expenditure as ________ is to ________
A) desire; accomplishment B) aggregate demand; aggregate supply C) output; income D) observed; theoretical E) fluctuation; equilibrium
Assume that each day ten thousand children watch Sesame Street on public television and that watching Sesame Street generates a benefit of $100 per child per year. Once a year, public television holds a pledge drive asking viewers to make voluntary contributions in order to keep the programming available to everyone. The broadcast of Sesame Street yields a total social benefit of ________ per year.
A. $10,000 B. $100 C. $1,000,000 D. $0
Which of the following models results in the highest level of output assuming a fixed number of firms with identical costs and a given demand curve?
A) Cournot B) Stackelberg C) Monopoly D) Cartel