Refer to the information provided in Figure 10.3 below to answer the question(s) that follow. 
Figure 10.3 Refer to Figure 10.3. The market wage is initially W0 and the firm is initially at Point A. Labor supply decreases from S0 to S1. If the firm does not change the amount of capital it employs, the firm will move to Point ________ to maximize profits.
A. B
B. C
C. E
D. F
Answer: A
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Often when consumers enter the used car market to make a purchase,
a. they know little about what they are purchasing. b. the motto "let the buyer beware" applies. c. the information they gain may not be perfect, but may be what economists call "optimally imperfect." d. All of the above are correct.
Indifference curves illustrate
a. a firm's profits. b. a consumer's budget. c. a consumer's preferences. d. the prices of two goods.
Explain what a “cap and trade” program is and how it works. Does the United States have a cap and trade program? If so, is it successful?
What will be an ideal response?
Suppose that the United States and Italy both produce wine and shoes. In the United States, wine sells for $10 a bottle and shoes sell for $40 a pair. In Italy, wine sells for 15 euros a bottle and shoes sell for 20 euros a pair. Given this information, trade will flow in both directions if the price of a dollar is between
A. 1.5 and 2.5 euros. B. .5 and .75 euro. C. .67 and 2 euros. D. 2.0 and 3.0 euros.