High Tech, Inc. produces plastic chairs that sell for $10 each. The following table provides information about how many plastic chairs can be produced per hour. Number of WorkersChairs Produced Per Hour00110218324428530 For simplicity, assume that labor is the only input. How many workers will be hired if the hourly wage for workers is $70?
A. 3
B. 2
C. 4
D. 1
Answer: B
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Which of the following statements is true about the income elasticity of demand?
A) The income elasticity of demand for normal goods is always zero. B) The income elasticity of demand for inferior goods is always zero. C) The income elasticity of demand for normal goods is always positive. D) The income elasticity of demand for inferior goods is always positive.
One argument for trade barriers is that U.S. producers pay higher wages than many of their foreign counterparts and that trade restrictions are necessary to protect U.S. workers from unfair competition brought about by low wage rates abroad. Is this a valid argument for protection?
What will be an ideal response?
Suppose the economy is currently operating at potential output; an expansionary gap may be caused by each of the following except:
A. a positive demand shock B. a positive inflation shock C. an increase in govt spending D. an increase in the inflation rate
Which of the following elements are involved in monopolistic competition?
a. difficult entry, many sellers, identical products; significant brand loyalty b. easy entry, many sellers, product differentiation; significant brand loyalty c. easy entry, few sellers, identical products; little brand loyalty d. difficult entry; few sellers; product differentiation; little brand loyalty