Refer to Figure 10.4. If the market was a monopoly, the consumer surplus would be:
A. $625.
B. $450.
C. $300.
D. $225.
Answer: D
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Compliance with wage and price controls by unions and businesses is strictly voluntary
a. True b. False Indicate whether the statement is true or false
If food is on the vertical axis and shelter on the horizontal axis, the slope of the budget line is given by
A. -Ps/Pf. B. -Pf/Ps. C. Pf/Ps. D. Ps/Pf.
A radio manufacturer is experiencing theft problems at its warehouse and has decided to hire security guards to reduce the thefts. The firm wants to minimize the net cost of warehouse thefts. 
Given the above info, if the cost of a stolen radio is $25, what is the MOST the firm would be willing to pay to hire the first security guard?
A. $200 B. $250 C. $750 D. $500
An increase in income will
A. shift the budget constraint to the right. B. make the budget constraint flatter. C. make the budget constraint steeper. D. make the budget constraint more bowed.