Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for ramen noodles, an inferior good. Which panel describes what happens in this market as a result of an increase in income?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
D
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If both the goods and the labor market are perfectly competitive, a firm that hires labor up to a point where the value of marginal product of labor equals the wage rate also produces at a point where price is:
A) equal to average cost. B) equal to marginal cost. C) less than marginal cost. D) higher than marginal cost.
In the summer 2012 the lobster catch in Maine was especially large, but instead of celebrating the fisherman were suffering from a lower total revenue. (Source: New York Times, July 28, 2012 ) As the lobster catch increases, there is
A) a movement along the demand curve, resulting in a higher price and a decreased quantity. B) a movement along the demand curve, resulting in a lower price and an increased quantity. C) no change in either the price or the quantity. D) a movement along the demand curve, resulting in a higher price and an increased quantity.
For every gift that A gives to B from the first to the tenth gift, A receives a net benefit of $10. The additional cost to A of giving an additional gift is constant at $5. It follows that A's marginal benefit curve for giving gifts to B is ___________________ (assuming that we place "marginal benefits" on the vertical axis and "number of gifts" on the horizontal axis)
A) downward-sloping over units 1 -10. B) upward-sloping over units 1-10. C) horizontal over units 1-10. D) vertical over units 1-10. E) There is not enough information provided to answer the question.
Which of the following is an example of a public good?
A. A weather warning system. B. A television set. C. A sofa. D. A bottle of soda.