We assume the marginal benefit of consumption ________ as we consume fewer units of a good.
A. remains constant
B. decreases
C. increases
D. could either increase or decrease
Answer: C
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The change reflected in the above figure might be a result of
A) a decrease in the real wage rate. B) an increase in the real wage rate. C) an increase in the money wage rate. D) a rise in the price level. E) a decrease in the money wage rate.
If the quantity of sunglasses supplied is represented by the supply equation QS = -60 + 4P, then to solve for the price of sunglasses, the equation would be rewritten as
A) P = 15QS + 240. B) P = 0.25QS + 15. C) P = QS - 7.5. D) P = 12 - 0.4QS.
If a firm operates in a perfectly competitive market, then
A) all firms will advertise. B) no firms will advertise. C) the market leader will advertise. D) new firms will advertise.
One way to ensure all producers benefit from a price floor is to:
A. ration a certain quantity per producer. B. ration a certain quantity per consumer. C. give a government guarantee to buy all surplus. D. All of these are examples of ensuring all producers benefit using non-price methods.