Refer to Table 3.1. Suppose that you have a house that you rent out. If you keep the lawn maintained, you can charge a higher monthly rent for the house. If your hourly wage rises from $25 to $35, what happens to the number of hours per week you spend maintaining the lawn?
A. They fall by 4 hours.
B. They fall by 8 hours.
C. They fall by 12 hours.
D. They don't change.
B. They fall by 8 hours.
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Suppose a single firm has constant marginal cost and faced the demand curve 
a. Illustrate in this graph how a monopolist who cannot price discriminate would price this good. What is the monopoly price and quantity?
b. Assuming no recurring fixed costs, how much profit does the monopolist make? How much consumer surplus is generated? c. If the monopolist were able to first-degree price discriminate instead, how much would he produce? How much profit would he make? How much consumer surplus is generated? d. Which outcome is more efficient and why? What will be an ideal response?
In the above figure, the intersection of curves A and B is the point at which
A) average total cost is minimized. B) average variable cost is minimized. C) average fixed cost is minimized. D) total product is maximized.
All of the following would increase the natural rate of unemployment EXCEPT
A. government licensing of teachers restricts employment. B. a mismatch of skills and jobs. C. union activity restricts the mobility of labor. D. an economic recession.
The Required Reserve Ratio