The figure above shows the market for umbrellas in Sunville. When the market for umbrellas in Sunville is in equilibrium, what is the total deadweight loss?
A) $2,000
B) $800
C) $0
D) 600 umbrellas
C
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Suppose a firm hires labor in a competitive labor market. When will hiring more labor increase the firm's profit?
a. When the marginal revenue product of labor exceeds the wage rate. b. When the marginal product of labor is positive. c. When the marginal labor cost is falling. d. When the wage rate is less than the firm's marginal cost of production.
What happens to the Phillips curve when the expected rate of inflation rises?
A) The curve shifts to the left. B) The curve becomes horizontal. C) The Phillips curve is unaffected. D) The curve shifts to the right.
The market for medical care relies primarily on:
a. For profit providers. b. Not for profit providers. c. Co-ops. d. Hospitals. e. The substitution effect.
Suppose that the market for fresh California navel oranges is in equilibrium and then an unanticipated freeze destroys half of the California navel orange crop. Assuming all other factors affecting supply or demand remain unchanged, how would you expect this event to change the market equilibrium for California navel oranges?
a. The demand for navel oranges would decrease resulting in a lower market equilibrium price and quantity. b. The supply of navel oranges would decrease resulting in a higher market equilibrium price and a lower market equilibrium quantity. c. Both supply and demand would increase, resulting in an increase in equilibrium quantity and an indeterminate change in price. d. Both supply and demand would decrease, resulting in a decrease in both equilibrium quantity and price.