An increase in supply of a product results when:
A. taxes on the product are increased.
B. the companies that produce the product have higher materials costs.
C. technological innovations are introduced in the manufacturing process.
D. the government reduces subsidies on the product.
Answer: C
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The labor supply curve represents: a. the relationship between the wage rate and labor productivity
b. the tradeoff between labor and leisure. c. the relationship between the wage rate and the quantity supplied of labor. d. the tradeoff between labor and capital as alternative factors of production.
The crude quantity theory is based on each of these assumptions except that
A. if M rises by a certain percentage, P rises by that same percentage. B. V and Q are constants. C. MV = PQ. D. if M rises by a certain percentage, V will rise by that same percentage.
A competitive firm will maximize profit by producing the level of output at which
A. the firm's total revenue exceeds total cost by the largest amount. B. the additional revenue from the last unit of output produced exceeds the additional cost of the last unit by the largest amount. C. the last unit of output produced adds the same amount to total revenue as to total cost. D. both a and b E. both a and c
Recall the Application about the government of Mexico City repainting highway lane lines to transform a 4-lane highway into a 6-lane highway to answer the following question(s).When the government converted the highway from 4 lanes into 6 lanes, they claimed the capacity had increased by 50 percent. When the government switched the highway back from 6 lanes to 4 lanes, they claimed the capacity had been decreased by 33 percent. Had the government used the midpoint method, the percentage increase would have been ________ percent and the percentage decrease would have been ________ percent.
A. 33; 50 B. 33; 33 C. 40; 40 D. 50; 50