Which of the following is likely to cause the demand curve for cars to shift to the left?
A) A rise in the price of gasoline
B) A rise in the price of cars
C) An increase in the economy's national income
D) An increase in the cost of production leading to an increase in the price of cars
A
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Four stores have a problem with theft and security is a public good. Let S stand for the number of person-hours of security patrols per week. The marginal benefit of security patrols to each of the stores is given by the formula MB = 200 - 2S. Patrols cost $20 per hour. What is the socially efficient level of security?
A. 90 person-hours of patrols per week B. 100 person-hours of patrols per week C. 92.5 person-hours of patrols per week D. 97.5 person-hours of patrols per week
According to Okun's law, if output grew 7% and full-employment output rose 5%, what would be the change in the unemployment rate?
A) -4 percentage points B) -1 percentage point C) 1 percentage point D) 4 percentage points
Use the Cobb-Douglas production function to show that a one-unit increase in the labor input will reduce the marginal product of labor and increase the marginal product of capital. Explain each of these results
What will be an ideal response?
All of the following are assumptions of the production possibilities curve EXCEPT
A) resources are fully employed. B) there is a fixed time period. C) there is a fixed level of technology. D) there is a fixed demand for the products.