Refer to the information provided in Figure 10.3 below to answer the question(s) that follow. 
Figure 10.3 Refer to Figure 10.3. The market wage is initially W0 and the firm is initially at Point A. Labor supply decreases from S0 to S1. If the firm does not change the amount of capital it employs, the firm will move to Point ________ to maximize profits.
A. B
B. C
C. E
D. F
Answer: A
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Refer to Scenario 9.1. If Sheb places ________ sheep on the commons, Monty is better off placing ________ on the commons
A) 4; 4 B) 5; 5 C) 5; 4 D) Both A and C are correct.
A monopolist faces
A) a downward-sloping demand curve. B) a horizontal demand curve. C) a perfectly elastic demand curve. D) a perfectly inelastic demand curve.
How can the U.S. federal government induce increases in the national saving rate?
A) by lowering the sales tax B) by levying taxes on individual retirement (IRA) accounts C) by reducing budget deficits D) all of the above E) none of the above
Use the table below to answer the following question. The table outlines the production possibilities for two hypothetical countries.
Redland | Blueland | ||
Mutton | Oats | Mutton | Oats |
(tons) | (millions of bushels) | (tons) | (millions of bushels) |
0 | 8 | 0 | 8 |
4 | 6 | 3 | 6 |
8 | 4 | 6 | 4 |
12 | 2 | 9 | 2 |
16 | 0 | 12 | 0 |
Which of the following statements is true?
a. Redland has a comparative advantage in producing oats.
b. Redland enjoys a comparative advantage in producing both products and could not gain from exchange.
c. Redland should specialize in producing mutton and should trade for oats.
d. In this example, Blueland has nothing to gain through trade with Redland.