Suppose you were to hear an economist oppose the minimum wage on the grounds that she estimated the loss to small businesses and to the unemployed and found that it exceeded the gain to workers getting a higher wage. You would know her to be relying on the ________ argument.
A. consumer and producer surplus
B. macroeconomic
C. elasticity
D. work effort
Answer: A
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If the price elasticity of demand for razors is 0.32, the demand for razors is
A) elastic. B) unit elastic. C) inelastic. D) perfectly inelastic. E) perfectly elastic.
Suppose the U.S. government has an annual budget of about $3.03 trillion. Does the U.S. government face the problem of scarcity?
a. No, a government with $3.03 trillion faces no real constraints. b. No, scarcity does not apply to governments. c. Yes, resources are limited even for the U.S. government. d. Yes, although the U.S. government can easily obtain more resources. e. Uncertain-economic theory has no answer to this question.
Total profit equals
a. TR ? TC. b. average profit times total output. c. total sales revenue minus total cost. d. All of the above are correct.
To answer the question, refer to the following table showing a demand schedule: 
As output increases from 1,000 to 1,400 what is marginal revenue?
A. -$75 B. $50 C. -$400 D. -$25 E. $25