Suppose the market consists of 3 individuals: Citizen A, Citizen B and Citizen C.
If the good shown on the graphs is a public good, and the marginal cost of the 20th unit is $10, then the optimal quantity of the public good is:
A. 20 units
B. less than 20 units.
C. zero.
D. greater than 20 units.
Answer: D
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Assume the demand function for good X can be written as Qd = 80 - 3Px - 6Py + 10I, where Px = the price of X, Py is the price of Y and I is consumer income
If the price of Y decreases by 5 dollars, what would the reduction in Px have to be in order to keep the quantity demanded of X unchanged by the change in the price of Y? A) decreased by 10 dollars B) decreased by 5 dollars C) decreased by 2.5 dollars D) decreased by 1 dollar
Economic Value Added helps firms to avoid the hidden-cost fallacy
a. by ignoring the opportunity costs to using a capital b. by differentiating between sunk and fixed costs c. by taking all capital costs into account including the cost of equity d. none of the above
Something that would cause the long-run aggregate supply curve to shift to the right would be:
A. technological advance. B. increase in the growth rate of the labor force. C. discovery of a new oil reserve. D. All of these would shift the long-run aggregate supply curve to the right.
Refer to the information provided in Figure 7.4 below to answer the question(s) that follow. 
Figure 7.4Refer to Figure 7.4. The marginal product of the third worker is
A. 10. B. 28.67. C. 32. D. 42.