In the figure above, if the firm is regulated using an average cost pricing rule, the deadweight loss created is equal to the area of
A) ABG.
B) BEFG.
C) BCFG.
D) BCE.
E) None of the above because there is no deadweight loss created.
D
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Which of the following is NOT held constant while moving along a supply curve?
A) expected future prices B) the number of sellers C) the price of the good itself D) prices of factors of production
If the CPI declines from 200 to 190, prices have declined by
A. 5%. B. 10%. C. 19%. D. 20%.
In Figure 1.3, a shift of the production possibilities curve from PP1 to PP2 could be caused by
A. The use of improved production technology. B. A decrease in the quantity of raw materials available. C. A decline in the production skills of workers. D. All of the choices are correct.
When 100 people who were previously looking for jobs stop looking for jobs, the
A. unemployment rate increases. B. labor-force participation rate does not change. C. unemployment rate does not change. D. size of the labor force decreases.