If we move to the right along the upward-sloping labor supply curve, we observe that the cost of labor
A. Decreases due to the increasing opportunity cost.
B. Decreases due to the decreasing opportunity cost.
C. Increases due to the increasing opportunity cost.
D. Increases due to the decreasing opportunity cost.
Answer: C
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When the price of a good increases by 300%, the quantity supplied of the good increases from 200 units to 900 units. The price elasticity of supply of the good is:
A) 1.17. B) 1.5. C) 3. D) 4.5.
The Coase theorem applies when property rights are given
A) to the victim of pollution but not to the polluter. B) to the polluter but not to the victim. C) to either the polluter or the victim. D) neither to the polluter nor to the victim.
Negative demand shifts can
A. cause a recession. B. lead to a positive supply shift. C. be defined as an increase in demand without an increase in supply. D. be caused by falling aggregate production.
Which of the following situations will arise in the domestic market following the imposition of a voluntary export restraint?
A. imports increase, domestic production increases, prices increase B. imports decrease, domestic production increases, prices increase C. imports increase, domestic production decreases, prices decrease D. imports decrease, domestic production increases, prices decrease