If Congress decides to reduce the tax per pack paid by sellers of cigarettes, other things being equal, the price of cigarettes will fall. This fall in prices can be attributed a(n):
A. upward movement along the supply curve for cigarettes.
B. rightward shift of the supply curve for cigarettes.
C. upward movement along the demand curve for cigarettes.
D. leftward shift of the supply curve for cigarettes.
Answer: B
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In the figure above, the number of unemployed workers is
A) 4,000. B) 3,000. C) 2,000. D) 5,000. E) zero.
DVDs can be produced at a constant marginal cost, and Roaring Lion Studios is releasing the DVDs for its last two major films. The DVD for Rambeau 17 is priced at $20 per disk, and the DVD for Schreck 10 is priced at $30 per disk
If the Lerner indices for Rambeau 17 divided by the Lerner index for Schreck 10 equals 0.5, what is the constant marginal cost of producing both DVDs? A) MC = $10 B) MC = $15 C) MC = $20 D) MC = $5
Which of the following involves signaling?
a. high wage rates attracting a larger pool of applicants for a job b. firms taking advantage of outsourcing when transactions costs are low c. reporting one's college GPA on a resume d. paying higher wages to workers who produce more e. requiring the sales staff to work strictly on commission
If the public decides to hold smaller cash balances, this will cause a(n)
a. increase in interest rates. b. decrease in average paychecks. c. increase in nominal GDP. d. increase in velocity.