Which of the following is assumed in constructing a typical production possibilities curve?
A. The economy is using its resources inefficiently.
B. Resources are perfectly shiftable among alternative uses.
C. Production technology is fixed.
D. The economy is engaging in international trade.
Answer: C
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Which of the following unemployment rates can be negative?
A) the official unemployment rate reported by the Bureau of Labor Statistics B) the natural unemployment rate C) the cyclical unemployment rate D) the seasonal unemployment rate
The figure above shows Diane's demand curve for soda. The price of a soda is $1.00. Diane's consumer surplus from her 10th soda is
A) $0.00. B) $0.50. C) $1.00. D) $1.50. E) $2.50.
If Big Box Store has customers with identical demands, if it practices two-part pricing, the profit-maximizing user fee is ________ the marginal cost of Big Box Store's product.
A) less than B) greater than C) exactly double D) equal to
If a firm pays its workers $10 per hour, the marginal product of labor is 5 units per hour, and the price of the firm's product is $15 per unit, what is the price elasticity of demand facing the firm?
A) -1.15 B) -2.15 C) -1.0 D) -3.56