Figure 5-17
In Figure 5-17, the consumer would prefer
A. D to C.
B. B to D.
C. C to B or A.
D. D to A but not B.
Answer: C
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Which of the following has a tendency to raise the unemployment rate?
A) reducing unemployment insurance in an economy B) offering wages at the market-clearing rate C) implementing a minimum wage in an economy D) reducing labor union membership in an economy
Tom and Jerry have two tasks to do all day: makedishes and build fences. If Tom spends all day makingdishes, he will have make 16 dishes. If he instead devotes his day to building fences, Tom will build 4 fences. If Jerry spends his day makingdishes, he will make 14 dishes; if he spends the day building fences, he will build 7 fences. After looking at the production possibilities for both Tom and Jerry, we can surmise that:
A. Tom has the absolute advantage in the production of both dishes and fences. B. Jerry has the absolute advantage in the production of both dishes and fences. C. Tom has the absolute advantage in the production of dishes and Jerry has the absolute advantage in fence production. D. Tom has the absolute advantage in the production of fences and Jerry has the absolute advantage in dish production.
Figure 9.1 shows the cost structure of a firm in a perfectly competitive market. If the market price is $40, the firm's profit maximizing output level is:
A. 500. B. 650. C. 900. D. 1,200.
If planned investment is sensitive to the interest rate, an increase in the interest rate causes the
A) aggregate expenditure curve to shift down. B) aggregate expenditure curve to shift up. C) long-run aggregate supply curve to shift out. D) investment demand schedule to shift to the right.