Refer to Scenario 14.4. Suppose that a pollution tax is imposed on each unit of a firm’s output. The number of workers hired A) will decrease. B) will increase. C) will not change. D) will change in an indeterminate fashion. ANSWER A
Date: September 9th, 2020
There is always some economic rent whenever the: A) demand for a factor is downward sloping. B) supply of a factor is upward sloping. C) supply and demand intersect. D) supply of a factor is horizontal. ANSWER B
Date: September 9th, 2020
Which of the following is NOT conducive to the successful operation of a cartel? A) Market demand for the good is relatively inelastic. B) The cartel supplies all of the world’s output of the good. C) Cartel members have substantial cost advantages over non-member producers. D) The supply of non-cartel members is very price elastic. […]
Date: September 9th, 2020
Suppose that, at the market clearing price of natural gas, the price elasticity of demand is -1.2 and the price elasticity of supply is 0.6. What will result from a price ceiling that is 10 percent below the market clearing price? A) A shortage equal to 1.8 percent of the market clearing quantity B) A […]
Date: September 9th, 2020
A price floor policy establishes a minimum price for a market. Which of the following results from a binding price floor? A) Equilibrium B) Excess demand C) Excess supply D) Shortage ANSWER C
Date: September 9th, 2020
What is the shape of the total revenue curve derived from a horizontal demand curve? A) Horizontal B) Vertical C) U-shaped D) Upward sloping, with a positive slope ANSWER D
Date: September 9th, 2020
Government water resource specialists have estimated that the Great Lakes currently contain about 200 thousand tons of pesticide pollutants, the amount of new pesticide pollutants that enter the lakes are about 20 thousand tons per year, and the stock of pesticide pollutants was about 200 thousand tons last year. Based on this information, what is […]
Date: September 9th, 2020
For the firm’s cost minimization problem, one of the key assumptions for each input is that: A) marginal product is constant. B) marginal product is increasing at a decreasing rate. C) marginal product is increasing at an increasing rate. D) marginal product is decreasing at an increasing rate. ANSWER B
Date: September 9th, 2020
A production function assumes a given A) technology. B) set of input prices. C) ratio of input prices. D) amount of capital and labor. E) amount of output. ANSWER A
Date: September 9th, 2020
Refer to Figure 9.8. In order to gain the equivalent imports as a $50 tariff, the government would have to impose a quota of A) 100 tons of sugar. B) 200 tons of sugar. C) 300 tons of sugar. D) 350 tons of sugar. E) 500 tons of sugar. ANSWER A
Date: September 9th, 2020
