By 1910 the top ten industries included printing, malt liquors, tobacco cars and railroad cars. The introduction of these new top ten industries indicated
(a) a shift in consumer preferences toward luxury items.
(b) an increase in real incomes in the U.S., permitting people to purchase luxury items.
(c) a smaller percentage of total consumption expenditures on essential food, clothing and shelter.
(d) all of the above.
(d)
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The figure above shows the market for pants. If the government subsidizes the production of pants so that production expands from 6 million pairs to 7 million pairs,
A) there would be no deadweight loss. B) the government's policy would have no effect on the sum of consumer surplus and producer surplus. C) a deadweight loss would result. D) the government's policy would increase the sum of consumer surplus and producer surplus. E) production would be even more efficient than if 6 million pairs of pants are produced because more is always better than less.
Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Table 1.3Production Possibilities for Brushes and CombsCombinationNumber of combsOpportunity Cost(Foregone brushes)Number of brushesOpportunity Cost (Foregone combs)J4 0NAK3 10 L2 17 M1 21 N0NA23 On the basis of Table 1.3, the highest opportunity cost for brushes in terms of combs is
A. 0.29 comb per brush. B. 0.50 comb per brush. C. 23 combs per brush. D. 0.10 comb per brush.
To measure core inflation, the BLS excludes ________ from the basket of goods used to calculate the CPI.
A. food and housing B. housing and gasoline C. food, clothing, and housing D. food and gasoline
As the quantity of labor increases, value of marginal product for a perfectly competitive firm
A) decreases because the firm must lower its price to sell a larger quantity. B) decreases because the marginal product of labor decreases. C) decreases because marginal revenue decreases. D) is constant because marginal revenue is constant.