An increase in the price of labor used to produce good A will lead to
A) an increase in the market clearing price of good A.
B) an increase in the supply of good A.
C) a decrease in the demand for good A.
D) an increase in the demand for good A.
Answer: A
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Which of the following can prevent markets from reaching the efficient level of production? I. a monopoly II. taxes III. the product is a public good
A) I and II B) II C) II and III D) I, II and III
How does the United States compare to other advanced, industrialized economies on the issue of openness?
a. It is completely closed. b. It is one of the less open of them. c. It is about average in openness. d. It is one of the more open of them. e. It is the most open of them.
In a December 2007 New York Times column Paul Krugman argued in favor of
a. protectionism based on the national-security argument. b. protectionism based on the infant-industry argument. c. protectionism based on the unfair-competition argument. d. keeping world markets relatively open.
When the marginal revenue curve is drawn for a monopolist, the curve
a. is above the monopolist's demand curve initially and then falls below the demand curve. b. is above the monopolist's demand curve for all output levels c. is equal to the monopolist's demand curve at all output levels. d. is below the monopolist's demand curve, beyond the initial unit produced.