Equilibrium is the condition that exists
A. when quantity demanded equals quantity supplied.
B. when the demand curve intersects the price axis.
C. when the demand curve intersects the quantity axis.
D. whenever there is no government intervention in the market.
A. when quantity demanded equals quantity supplied.
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At the point where diminishing marginal returns set in, the slope of the total product curve is
a. positive and increasing b. positive and decreasing c. negative and increasing d. negative and decreasing e. constant
If consumption of education creates a positive externality, then in order to increase efficiency relative to the outcome determined by private decisions,
a. more education must be produced b. the same amount of education must be produced, and the price should be lower c. less education must be produced, and the price should be higher d. less education must be produced, and the price should be lower e. less education must be produced at the same price
If there are high transportation costs
a. the terms of trade will also be high b. the result could be incomplete specialization c. large countries will have an advantage in trading with small countries d. small countries will have an advantage in trading with large countries e. trade will be based on absolute advantage rather than comparative advantage
In the standard model of a monopoly union bargaining with the firm, it is typically assumed that
A. union leadership disregards the preferences of the rank and file. B. the union's sole objective is to increase the wage. C. unions and management secretly negotiate on the behalf of stockholders. D. unions never lead to an efficiency loss. E. unions are willing to trade off some amount of employment for higher earnings.