Letters are used to represent the terms used to answer this question: price (P), quantity of output (Q), total cost (TC) and average total cost (ATC). Which of the following equations is equal to a firm's profit?
A) P - ATC
B) (P × Q) - TC
C) (P × Q) - (P × ATC)
D) P - TC
Answer: B
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Refer to Scenario 3 . Why are elasticities of demand rather than slopes used to measure and compare responsiveness?
What will be an ideal response?
Mismatch and turnover unemployment, while conceptually easy to distinguish, are often difficult to identify. Ceteris paribus, a person out of work for two months would be classified by Gordon as
A) experiencing turnover unemployment. B) experiencing mismatch unemployment. C) impossible to distinguish the type. D) first frictionally unemployed (the first month) and then structurally unemployed.
Which of the following would cause the demand for computer programmers to increase?
a. a decline in the productivity of computer programmers b. an increase in the productivity of computer programmers c. an increase in the wages of computer programmers due to legislative action (that is, the establishment of a price floor for computer programmers) d. a reduction in the price of a competitive input that can be substituted for computer programmers
Figure 3.5 illustrates the supply of tacos. A technological advancement which makes tacos cheaper to produce would most likely cause a movement from:
A. point a to point c. B. point c to point a. C. S2 to S0. D. S0 to S2.