If the price of a variable input increases, then
A. the fixed cost curve will shift up.
B. the average total cost curve will shift down.
C. the total cost curve will shift up.
D. the marginal cost curve will shift down.
Answer: C
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A long-term mismatch between the skills of some workers and the jobs available is a principal cause of ________ unemployment.
A. structural B. cyclical C. frictional D. global
Suppose Factory A emits 15,000 units of "Yuck" monthly, Factory B emits 30,000 units, and Factory C emits 45,000 units. Also suppose A's cost of reducing the emission is $1 per unit, B's cost is $2 per unit, and C's cost is $3 per unit
If the EPA prohibits any factory from emitting more than 15,000 units of yuck per month, what would be the total cleanup cost? A) $15,000 B) $40,000 C) $45,000 D) $90,000 E) $120,000
Marco goes to the pet store to buy a dozen Koi fish for his new Koi pond. He is willing to pay $200 for the dozen fish, but buys them for a total of $140. Marco's consumer surplus from the purchase is
A) $5. B) $60. C) $140. D) $200.
In the ultimatum game, allocators usually offer recipients at least a 40 percent share of the money, and recipients almost always reject offers of less than a 10 percent share
Which of the following does not explain why allocators offer recipients a relatively generous share and why recipients reject meager offers? A) Some people are careful not to engage in economic behavior that might offend and alienate others. B) People can and often do reject offers that offend their sense of fairness even if doing so means taking a monetary loss. C) Allocators can count on recipients to ignore all considerations except financial benefit. D) Fear of arousing outrage and abhorrence could influence economic decisions.