Assume a ceiling price is set above the equilibrium price. The eventual result is a shortage
a. True
b. False
Indicate whether the statement is true or false
False
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Why are most contracts incomplete?
Suppose a sandwich shop currently employs four workers and the shop produces 12 sandwiches an hour. A fifth worker gets hired and the shop now produces 15 sandwiches per hour. Which of the following is true?
A. Diminishing marginal product has set in. B. The total product of the sandwich shop is now 27 sandwiches. C. The marginal product of the fifth worker is three sandwiches. D. All of these are true.
The United States imports televisions from Japan and Japan imports computer chips from the United States. If the theory of comparative advantage guides trade between the two countries, it must be true that
A. the United States has comparative advantage in producing televisions. B. the United States has comparative advantage in producing computer chips. C. the opportunity cost of producing televisions in Japan is higher than that in the United States. D. the opportunity cost of producing computer chips in the United States is higher than that in Japan.
When the price of a product is increases by 15 percent, the quantity demanded decreases by 10 percent. We can therefore conclude that the demand for this product is
A. inelastic. B. elastic. C. unitary elastic. D. cross-elastic.