Which is not a determinant of supply?
a. The existing state of technology used by the firm
b. The level of government taxes and subsidies
c. The cost of resources used in production
d. The market price of the good
Answer: d. The market price of the good
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Which one of the countries below announces inflation targets?
A) Japan B) U.S. C) Canada D) Mexico E) Nicaragua
Which one of the following statements is correct?
a. Policymakers have good intentions and therefore their proposals will create good outcomes. b. Potential secondary effects do not need to be considered when deciding whether to implement a new government program. c. A good outcome is guaranteed from a government program if it is created with good intentions. d. Government programs can be implemented with good intentions but can lead to undesirable outcomes because of unintended consequences.
Which of the following is not how economists describe the term "economic rent?:
A. The rental price of a factor of production minus the cost of supplying it. B. The producer surplus in output markets. C. The gains that workers and owners of capital receive from supplying their labor or machinery in factor markets. D. The total revenue that a factor of production earns its owner.
Figure 13.1 shows a demand and costs of an unregulated monopoly. At the output level of 22,000 units:
A. the firm's marginal revenue is smaller than its marginal cost. B. the firm is earning a zero economic profit. C. the firm is producing more than its profit maximizing level of output. D. All of these are correct.