If labor productivity increases
A. the demand for labor increases.
B. jobs will relocate.
C. some workers will be laid off.
D. labor costs rise by equal increments.
Answer: A
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John raises bees to pollinate his apple trees. One of the bees just stung him. This is a(n)
A) private cost. B) social cost. C) internality. D) common property.
Use the above figure. The profit-maximizing output and price is
A) 600 and $16, respectively. B) 600 and $10, respectively. C) 600 and $8, respectively. D) 800 and $10, respectively.
The market for used cars is not considered perfectly competitive because:
A. there is complete information. B. the buyers are not price takers. C. the good is standardized. D. there are always very low transaction costs.
Suppose a nation reduced taxes by $20 billion. The direct change in the monetary base would be:
a. Equal to +$20 billion because the government pumps new money into the economy when it lowers taxes. b. Greater than +$20 billion because the M2 money multiplier would inflate the $20 billion of new monetary base. c. Equal to $0. d. Equal to $20 billion times the reserve ratio on checking accounts. e. Less than $20 billion because some of the newly created funds would leak into the system in the form of currency in circulation.