Refer to the information provided in Figure 19.1 below to answer the question(s) that follow. 
Figure 19.1 Refer to Figure 19.1. The payroll tax imposed initially
A. reduced the equilibrium wage rate by $5 per hour.
B. did not change the equilibrium wage rate.
C. increased the equilibrium wage rate by $3 per hour.
D. reduced the equilibrium wage rate by $3 per hour.
Answer: B
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A country that has an absolute advantage in producing all goods will ________
A) have a comparative advantage in some goods but not all B) produce all goods at lowest opportunity cost C) have a comparative advantage in all goods D) not gain from specialization and trade
Local or state offices of the Department of Justice usually set prices for natural monopolies in their jurisdictions
Indicate whether the statement is true or false
Compared to a barter economy, using money increases efficiency by reducing
a. transaction costs. b. the need to exchange goods. c. the need to specialize. d. inflation.
If the absolute price of a computer is $500 and the relative price of a dining room table is 3 computers, it follows that the absolute price of a dining room table is
A) $167. B) $750. C) $3,000. D) $30,000. E) none of the above