The height of the market supply curve
a. at any quantity shows the value -- to someone -- of the last unit of the good consumed
b. at any quantity shows the cost -- to someone -- of purchasing the last unit of the good
c. at any quantity shows the marginal cost of producing the last unit of a good
d. shows the market value of a good or service
e. measures the size of the side payment necessary to achieve a Pareto improvement
C
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The price elasticity of cigarettes has been estimated as -0.5. The government has decided that they want to decrease the amount that people in the United States smoke by 10%. It follows that they must institute measures that would raise the price of cigarettes by
a. 5% b. 10% c. 15% d. 20%
Was the money multiplier stable during the Great Recession? Why would an unstable money multiplier pose a problem for monetary policy?
What will be an ideal response?
Refer to the above figure. The highest price that consumers would be willing to pay for quantity Q2 is
A) P2. B) P0. C) P1. D) cannot be determined from the diagram.
Several years ago while teaching in Russia, I was using a production function like the ones used in this text. Output is a function of labor, capital and technology. One professor asked me how I could talk about production without including all the inputs that go into the process. Write a response to this professor from what you know of a production function.You should focus on the concept of value added production.
What will be an ideal response?