How much would the firm make in revenue if it prices both its products successfully?
a. $110
b. $120
c. $130
d. $140
d
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Which of the following will NOT be included in a bank's liability?
A) Short-term borrowing by the bank B) Demand deposits held with the bank C) Cash equivalents of the bank D) Long-term debt of the bank
African governments wish to reduce the poaching of elephants, which is done to harvest the elephant’s ivory from its tusks. If this is the goal, economists would suggest that
A. a price ceiling for ivory should be set, to reduce the price in the market, which would discourage poaching. B. governments continue to stockpile confiscated ivory, to keep it out of the market. C. burning ivory reduces the supply, which would reduce the number of buyers. D. confiscated tusks should be sold by governments because this would lower the price of ivory and reduce the reward to poachers.
Consider an apple orchard owner deciding how to incentivize his fruit pickers. He pays per pound harvested but adjusts the compensation rate higher during poor harvest seasons. As a consequence
a. The picker's effort would not depend on the compensation rate b. The pickers would claim poor harvests in order to be paid higher piece rates even during bountiful harvest seasons c. The pickers would claim good harvests in order to be paid higher piece rates even during poor harvest seasons d. None of the above
What is the net effect of illegal immigration on total employment in the United States?
A. The net effect is zero, as illegal immigrant workers displace domestic-born workers on a one-for-one basis. B. Total employment increases, but with some substitution of illegal immigrants for domestic- born workers. C. Total employment decreases. D. Total employment increases, with no displacement of or substitution for domestic-born workers.