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 $34,000?
A. 0
B. 1
C. 3
D. 2
Answer: B
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The Volumetric Ethanol Excise Tax Credit (VEETC) is a tax credit (which acts like a subsidy) for registered ethanol-gasoline blenders. Qualified blenders receive $0.51 for each gallon of pure ethanol they blend into gasoline
What statement is TRUE? A) With a subsidy, the price paid by consumers will be lower than without a subsidy. B) Without a subsidy, the quantity produced by blenders will be greater than the quantity demanded. C) With a subsidy, the equilibrium quantity produced will be lower than without a subsidy. D) With a subsidy, production will be efficient.
According to the mini-case on the Barbie Doll, Mattel is successful because
A) it has been selling Barbie dolls for a long time. B) the Barbie doll is the top import into the U.S. C) international trade allows them to produce a wide variety of doll types at many price points. D) there are low fixed costs for product design.
When the economy is producing Real GDP at the level at which the LRAS curve intersects the AD curve the economy is
A) in a recessionary gap. B) in long-run equilibrium. C) in an inflationary gap. D) operating at less than full-employment output.
For the highest quintile, the share of market income going to that quintile is
A. equal to the other quintiles for after-tax income but greater for that quintile for before-tax income when compared to the other quintiles. B. lower for after-tax income than for before-tax income. C. higher for after-tax income than for before-tax income. D. greater for that quintile for after-tax income when compared to the other quintiles but equal to the other quintiles for before-tax income.