A rightward shift of a supply curve
a. represents a decrease in supply
b. might be caused by an increase in demand
c. might be caused by a price ceiling
d. would cause an excess quantity supplied at the previous equilibrium price
e. might be caused by a decrease in demand
D
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The addition of government to the circular-flow model illustrates that government
A. purchases goods in the product market. B. provides services to businesses and households. C. purchases resources in the resource market. D. does all of these.
According to efficiency wage models,
a. their key element is an explanation of why the efficiency (or productivity) of workers depends on the real wage. b. the rationale underlying those models implies that firms will set the real wage below the market clearing level. c. they explain real wage volatility. d. all of the above.
Refer to Scenario 5.9. Given that the probability of a positive faculty response is 75%, Torrid Texts' expected profit under complete information would be
A) $23.25 million. B) $45 million. C) $45.25 million. D) $45.75 million. E) $60 million.
For a particular competitive firm, the minimum value of average variable cost (AVC) is $12 and is reached when 200 units of output are produced. For the same firm, the minimum value of average total cost (ATC) is $15 and is reached when 230 units of output are produced. Which of the following statements is correct?
a. In the short run, the firm will shut down if the price of its product is $14. b. In the long run, the firm will shut down if the price of its product is $11. c. For this firm, the minimum value of variable cost (VC) is $2,400. d. If the firm's fixed cost (FC) amounts to $500, then the firm cannot earn a positive profit unless the price of its product exceeds $16.