Suppose a worker is offered a wage of $8 per hour, plus a fixed payment of $100 per day, and he can use 24 hours per day. What is the equation for the worker's opportunity set? (E is total earnings and L is leisure.)
A. E = 192 ? 8L
B. E = 292 ? 8L
C. E = 100 ? 8L
D. None of the statements is correct.
Answer: B
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A farmer who sells September corn futures at the time he plants his corn in May is
A) competing against speculators, who profit from price fluctuations. B) increasing his risk from price fluctuations. C) reducing his risk from price fluctuations. D) reducing or increasing his risk from price fluctuations, depending on what subsequently happens to the price of corn.
From 1929 to 1993, the first four years of the Great Depression, U.S. output dropped by more than
a. 10 percent b. 80 percent c. 5 percent d. 50 percent e. 25 percent
In which one of these years was the U.S. poverty rate the lowest?
A. 1960 B. 1964 C. 1973 D. 1983
The imposition of a per unit tax on a product
A) will cause the supply curve to shift downward and to the right. B) will cause the supply curve to shift upward and to the left. C) will reduce the quantity supplied of the product. D) will encourage producers to increase the quantity supplied of the product.