Related to the Economics in Practice on page 79: If a hurricane results in the supply of hotel rooms decreasing and the equilibrium price for hotel rooms increases, the demand for hotel rooms ________ and total revenue from the sale of hotel rooms ________.
A. may have increased, decreased, or stayed the same; may increase, decrease, or stay the same
B. may have increased, decreased, or stayed the same; will decrease
C. has decreased; may increase, decrease, or stay the same
D. has decreased; will decrease
Answer: A
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How has the widespread availability of news on the web, which decreased the demand for newspaper workers, affected the wages of the works?
A. Wages decreased. B. Wages stayed the same. C. Wages increased. D. Wages are not affected by this.
Figure 10-5
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Figure 10-5 shows supply and demand conditions in a perfectly competitive industry and for a firm in that industry. At point C, the firm would
A. earn zero economic profit. B. earn negative economic profit. C. have a zero opportunity cost of capital. D. have a negative opportunity cost of capital.
For a monopolist, at the profit-maximizing level of output:
A. price is greater than average revenue. B. average revenue is greater than marginal cost. C. marginal cost is greater than price. D. total revenue is equal to total cost.
An investment decision involves choosing
A. The amount of plants and equipment and is a short-run decision. B. A rate of output and is a short-run decision. C. The amount of plants and equipment and is a long-run decision. D. A rate of output and is a long-run decision.