The variety that monopolistic competition provides is paid primarily by
A. all consumers whether they desire variety or not.
B. the producer whose ability to pass on costs is limited by his demand curve.
C. those customers who desire the variety.
D. no one because variety costs no more to produce than uniform products cost to produce.
Answer: C
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Long-run aggregate supply and a country's production possibility curve (PPC)
A) are inversely related. B) are closely related. C) have no relationshi
If the demand for gasoline becomes more elastic over time,
A. the demand curve will shift out. B. the demand curve will become flatter. C. other things being equal, the equilibrium price of gasoline must fall. D. other things being equal, the equilibrium quantity of gasoline must fall.
The Slutsky decomposition of the effect of the real wage on a person's labor supply decision suggests that the negative income effect of such a wage change will be larger: a. the smaller is the quantity of labor supplied and the smaller is the effect of non-labor income
b. the smaller is the quantity of labor supplied and the larger is the effect of non-labor income. c. the larger is the quantity of labor supplied and the smaller is the effect of non-labor income. d. the larger is the quantity of labor supplied and the larger is the effect of non-labor income.
Your classmates from the University of Chicago are planning to go to Miami for spring break, and you are undecided about whether you should go with them. The round-trip airfare is $600, but you have a frequent-flyer coupon worth $500 that you could use to pay part of the airfare. All other costs for the vacation are exactly $900. The most you would be willing to pay for the trip is $1,400. Your only alternative use for your frequent-flyer coupon is for your trip to Atlanta two weeks after the break to attend your sister's graduation, which your parents are forcing you to attend. The Chicago-Atlanta round-trip airfare is $450. If the Chicago-Atlanta round-trip air fare were $350, should you use the coupon to go to Miami?
A. Yes, your economic surplus would be $50. B. No, your economic surplus would be -$100. C. Yes, your economic surplus would be $400. D. No, your economic surplus would be -$50.