What happens to supply when input costs go up?
(A) It decreases because consumers find a substitute product.
(B) It decreases because the good becomes more expensive to produce.
(C) It increases because the good becomes more expensive to produce.
(D) It increases because the good becomes cheaper to produce.
Ans: (C) It increases because the good becomes more expensive to produce.
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The reason that the coffeehouse market is monopolistically competitive rather than perfectly competitive is because:
Daniel Hammermesh and Stephen Donald studied the determinants of the earnings of college graduates years after they graduated. Which of the following is one result of their study?
A) Students who took more Advanced Placement (AP) courses while still in high school earned significantly more income for each AP course they passed with a grade of 4 or 5. B) Students who took at least three economics courses earned about 9 percent more income than students who took no college economics courses. C) Students who had taken 15 credits of upper-division science and mathematics courses and earned high grades in these courses earned about 10 percent more than students who took no upper-division classes in these subjects. D) The earnings of identical twins were about 9 percent higher than the earnings of all other students.
A student is working on a group class-project where the same grade is assigned to everyone in the group. He chooses to not contribute to the project. What term best describes this situation?
a. Moral hazard b. Tragedy of the Commons c. Public good problem d. Free Rider Problem
Based on this graph, the year with the highest surplus took place in the ______.
a. 1940s
b. 1970s
c. 1990s
d. 2000s