Figure 4-16
Assume that Figure 4-16 shows the supply of orange juice. A decrease in the wage rate paid to workers in the orange juice industry will shift supply from
a.
S1 to S2.
b.
S2 to S1.
c.
S3 to S2.
d.
S3 to S1.
a
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According to the circular flow of income and output, which of the following is not true?
A. Total income and total output must be equal. B. Goods and services flow in one direction and money payments flow in the other direction. C. In every economic? transaction, the seller receives exactly the same amount that the buyer spends. D. ?Goods, services and money all flow in one direction since money pays for the goods and services.
Use the following diagram in which S is the market supply curve and S1 is a supply curve comprising all costs of production, including external costs, to answer the question below.
Assume that the number of people affected by these external costs is large. Without government interference, this market will reach a(n)
A. optimal allocation of society's resources. B. overallocation of resources to this product. C. higher price than is consistent with an optimal allocation of resources. D. underallocation of resources to this product.
How do Canada and the United Kingdom deliver healthcare and what is the problem left unresolved?
What will be an ideal response?
If the minimum efficient scale of production is small relative to the size of a market, then
a. the industry will tend to be highly concentrated b. there will be much strategic interdependence among the sellers in the industry c. the industry is unlikely to be an oligopoly d. it is more likely that sellers in the industry will successfully collude e. there will be much merger activity in the industry