Refer to the above figure. The firm's short-run shutdown price is
A) at $1.
B) at $2.
C) at $4.
D) above $4.
A
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Substitution bias in the CPI refers to the fact that the CPI
A) takes into account the substitution of goods by consumers when relative prices change. B) takes no account of the substitution of goods by consumers when relative prices change. C) substitutes quality changes whenever they occur without taking account of the cost of the quality changes. D) substitutes relative prices for absolute prices of goods.
Refer to Table 4-3. The table above lists the marginal cost of cowboy hats by The Waco Kid, a firm that specializes in producing western wear. If the market price of cowboy hats is $50, producer surplus is
A) $0. B) $4. C) $62. D) $138.
Microeconomics approaches the study of economics from the viewpoint of:
A. inflation, unemployment, and economic growth. B. the federal government. C. individual economic units, such as consumers, firms, and units of government. D. the economy as a whole.
The credits for a principles of economics section is three units, and an instructor teaches two sections with 100 students in each, and tuition and fees at your university are $100 per unit. If the instructor is paid $20,000 to teach both classes, should the university hire the instructor?
A. Yes, the MRP of the instructor is higher than the wage. B. Yes, the wage is higher than the instructor's MRP. C. Yes, the wage of the instructor is higher than the MRP. D. No, the wage is higher than the instructor's MRP.