From Table 2.3, at the price of $4, there is a 
A. shortage of 2.
B. surplus of 4.
C. neither a shortage nor a surplus.
D. surplus of 2.
Answer: D
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When the unemployment rate equals the natural unemployment rate, most likely the economy is producing
A) on the production possibilities frontier. B) within the production possibilities frontier. C) beyond the production possibilities frontier. D) either on or within the production possibilities frontier. E) either on or beyond the production possibilities frontier.
As the quantity of labor increases, the marginal product of capital
A) is constant. B) increases. C) decreases. D) may either increase or decrease.
The following table provides information about production at the XYZ-TV Company.Number of WorkersTVs ProducedMarginal ProductValue of Marginal Product00------13535$35,00026833$33,00039931$31,000412829$29,000515527$27,000 How many workers will XYZ-TV Company hire if the going wage for TV production workers is $28,000?
A. 1 B. 2 C. 4 D. 3
Refer to the above graph. It represents a monopolistically competitive firm in a constant-cost industry. In long-run equilibrium this firm will:
A. continue to earn economic profits because it has monopolistic power to set its price. B. break even because its demand curve will fall and become more elastic as it loses sales to other firms entering the market. C. become a perfectly competitive firm because there are no significant barriers to entry. D. break even because average total cost (ATC) and marginal cost (MC) will increase as more firms enter the market.