If oil prices increase, then in the short run, real GDP will ________ and the price level will ________
A) increase; rise
B) increase; fall
C) decrease; rise
D) decrease; fall
E) not change; rise
C
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If the marginal resource cost of the tenth worker hired by a firm is $4 and the wage of the tenth worker is $3, the firm will hire ten workers if the marginal revenue product of the tenth worker is
a. $3 b. less than $3 c. greater than or equal to $3 d. greater than or equal to $4 e. less than $4
Tariffs result in a decrease in consumer surplus because: a. the price and the quantity consumed of the protected good increases
b. the price and the quantity consumed of the protected good decreases. c. the price of the protected good increases and quantity consumed decreases. d. the price of the protected good decreases and quantity consumed increases.
Refer to the information provided in Figure 9.2 below to answer the question(s) that follow.
Figure 9.2Refer to Figure 9.2. If MR = $9, then in the long run
A. new firms will enter the industry and the current firms will expand production. B. the firm will shut down. C. the firm will exit the industry. D. None of the above is correct.
Refer to the data provided in Table 16.1 below to answer the following question(s).Table 16.1 shows the situation facing two firms, both of which are polluting. Assume that each firm emits 5 units of pollution.Table 16.1Firm AFirm AFirm AFirm BFirm BFirm BReduction of Pollution by Firm AMC of reducing pollution for Firm ATC of reducing pollution for Firm AReduction of Pollution by Firm BMC of reducing pollution for Firm BTC of reducing pollution for Firm B1$4$41$8$82 610212203 9193163641332420565185052480Refer to Table 16.1. Suppose the government wants to reduce the total amount of pollution from the current level of 10 to 4. To do this, the government caps each firm's emissions at 2 units and issues 2 permits to each firm. If firms are allowed to trade permits, how many permits
will be traded between the two firms? A. B will buy two permits from A. B. A will buy one permit from B. C. B will buy one permit from A. D. A will buy two permits from B.