Refer to Figure 9-3. What is the value of domestic producer surplus without a quota?
A) $5 million B) $15.75 million C) $38.5 million D) $53.5 million
A
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Jim recently graduated from college. His income increased tremendously from earning $500 . a year to $60,00 . a year. Jim decided that instead of renting he will buy a house. This implies that
a. Houses are normal goods for Jim b. Houses are inferior goods for Jim c. Renting and Owning are complementary for Jim d. Need information on the price of houses
If a nation is experiencing an inflow of capital and a balance of trade deficit, this is a problem if
a. the capital inflow is channeled into productive projects. b. the capital inflow is channeled into unproductive projects. c. the country's rate of unemployment is low. d. the investment rate of the country is already high.
If a firm has excess capacity, then
A) the firm expends too much of its resources on advertising its product without seeing an appreciable increase in sales. B) the firm is not producing its minimum efficient scale of output. C) the firm's long-run average cost of producing a given quantity exceeds its short-run cost of producing that same quantity. D) the firm's quantity supplied exceeds its quantity demanded.
Jerry sells cherry sno-cones along the boardwalk in New Jersey. During the summer this is a perfectly competitive business, and Jerry faces a perfectly elastic demand curve. If he wants to try to increase revenues he should
A. keep the price the same but produce more to increase sales. B. raise the price of his sno-cones to make more per sale. C. lower the price of his sno-cones to try to sell more. D. do nothing; there is nothing he can do to increase revenue.