Refer to the above figure. If a price floor of $3 was set
A. there would be a shortage of 20 units.
B. there would be a shortage of 40 units.
C. the quantity sold would be 80 units.
D. there would be a surplus of 40 units.
Answer: C
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Two friends, Diane and Sam, own and run a bar. Diane tends bar on Monday, Wednesday, and Friday and receives a wage in addition to tips. Sam tends bar on Tuesday, Thursday, and Saturday and receives only tips. Which of the following represents an implicit cost of operating the bar?
a. Diane's wage b. Sam's time c. Diane's tips d. Sam's tips e. both Diane's and Sam's tips
If the interest rate is 4 percent, then you would be equally happy if you received a gift of either $100 today or a gift of
a. $110.00 two years from today. b. $112.49 three years from today. c. $116.00 four years from today. d. $123.67 five years from today.
The quantity theory of money of the Classical economists says that a change in the money supply will produce a:
A. proportional change in the price level. B. greater than proportional change in the price level. C. less than proportional change in the price level. D. wide variation in the velocity of money.
Refer to the above diagram. At output level Q total cost is:
A. 0AFQ plus BCDE. B. 0BEQ plus BCDE. C. BCDE. D. 0BEQ.