Suppose that the equilibrium price of T-shirts increases and the equilibrium quantity of T-shirts decreases. This is best explained by a(n):
A. decrease in the demand for T-shirts.
B. increase in the demand for T-shirts.
C. increase in the supply of T-shirts.
D. decrease in the supply of T-shirts.
Answer: D
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Distinguish economies and diseconomies of scale. How can the extent to which economies and diseconomies of scale explain the size and number of real world firms in an industry?
An example of a natural resource is:
A. Michael Jordan's athletic ability. B. Farmer Joe's farm fields. C. Bill Gates' revolutionary iPod. D. All of these are examples of natural resources.
Paper Pushers Inc. hires workers in a competitive labor market. Apart from labor, the company has no other variable inputs. The company's hourly output varies with the number of workers hired, as shown in the table. WorkersPages/hour0014027531054125514061507155 If the market price of each page is $5, the first worker's VMP is ________ per hour, and the third worker's VMP is ________ per hour.
A. $200; $150 B. $200; $525 C. $20; $525 D. $20; $15
The IMF offers loans to developing countries in times of balance of payment constraints, but the IMF also faces strong criticisms because:
A. contractionary fiscal policy and expansionary monetary policy tend to be ineffective against balance of payment constraints. B. contractionary fiscal and monetary policies are always undesirable for any developing country. C. it employs economists that know little about developing countries and their economic affairs. D. the conditions tend to be procyclical, therefore worsening the recessions.