An increase in the price of wheat will lead to
A. a leftward shift in the demand curve for wheat.
B. a rightward shift in the supply curve for wheat.
C. an increase in the quantity of wheat consumed.
D. an upward movement along the demand curve for wheat.
Answer: D
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A monopolist is currently hiring 5,000 units of labor. At this level, the marginal revenue of output is $10, the (fixed) wage rate is $300, and the marginal product of labor is 50. In order to maximize profit, the firm should
A. hire more labor because the next unit of labor increases profit by $500. B. hire more labor because the next unit of labor increases profit by $200. C. hire less labor because the last unit of labor added more to total cost ($300) than to total revenue ($10). D. keep the level of employment the same because the firm is earning a profit of $100,000.
16) In the figure above, Point A is undesirable because A) there is an inefficient use of resources. B) too much healthcare is being produced. C) the opportunity costs of health care are too high. D) point E is a more realistic option in this economy.
Crowding out may occur when fiscal policy involves
A. tax cuts. B. increases in government purchases. C. either increases in government purchases or tax cuts. D. tax increases.
Which of the following is solely responsible for determining changes in the money supply in the United States?
A. the chairman of the Federal Reserve B. the Comptroller of the Currency C. the Federal Open Market Committee D. the U.S. Treasury