In Figure 6.2, the price is $20 and the shaded area represents:
A. producer surplus.
B. consumer surplus.
C. market equilibrium.
D. a price ceiling.
Answer: A
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The linkage between high productivity and high earnings is vitally important because
a. it provides individuals with a strong incentive to develop skills and engage in activities that others value highly. b. high productivity (a large output per hour worked) is the key to high living standards. c. it brings the self-interest of individuals into harmony with economic progress. d. all of the above are true.
Which of the following statements is false?
A. Bonuses are paid in addition to base salary. B. Bonuses are frequently linked to performance. C. Free-riding can result from a compensation scheme that gives competitive individual bonuses. D. Free-riding can result from profit sharing. E. Profit sharing redistributes profits back to the workers.
Recall the Application about the 1998 merger between Pennzoil and Quaker State to answer the following question(s). The merger resulted in a company with a market share of 38 percent: 29 percent from Pennzoil and 9 percent from Quaker State.Recall the Application. A recent study looked at the merger between Pennzoil Motor Oils and Quaker State Motor Oils, plus four other mergers. Their study found that after the mergers, the price of their products only slightly increased. This modest increase surprised:
A. those who expected the price to rise by a lot because of increased concentration. B. those who expected to price to decrease because of increased efficiency. C. those who expected the price to decrease because of increased government regulations. D. those who expected the price to rise by a lot because of increased concentration and those who expected to price to decrease because of increased efficiency are correct.
Figure 19-2
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Of the graphs in Figure 19-2, which one shows the effect of an increase in interest rates in Japan?
A. 1 B. 2 C. 3 D. 4