Refer to Figure 9.7. The amount the government will have to pay to producers to sustain this policy is at least A) $0. B) $10,000. C) $15,000. D) $20,000. E) $100,000. ANSWER D
Date: September 9th, 2020
An important determinant of the amount of grains harvested next year by Ethiopian farmers is the amount of seeds planted this year. Given that Western nations have guaranteed to donate five hundred tons of grain next year, this year the Ethiopian farmers will: A) plant more seeds as the food aid establishes a minimum price […]
Date: September 9th, 2020
The following expressions describe a perfectly competitive labor market. The labor supply curve is: SL = AE = $3.00 + $0.000375L. The marginal revenue product of labor curve is: MRPL = $13.00 – 0.000433L. a. Find the equilibrium wage in this labor market. Also, find the optimal number of labor hours worked per week. Let […]
Date: September 9th, 2020
Based on what we know about asset price formation, what steps can a government use to restrict the formation of an asset price bubble? A) Lower interest rates in order to discourage savings and investment B) Loosen lending requirements for banks, which encourages investors to buy bank stock rather than the “bubbling” asset C) Increase […]
Date: September 9th, 2020
The key assumption required for us to use a linear variable cost function of the form VC = bq is that: A) marginal cost must be constant and equal to b. B) marginal cost must be increasing at rate b. C) fixed costs must be zero. D) marginal cost is always greater than average variable […]
Date: September 9th, 2020
What is the profit maximizing condition for a vertically integrated firm? A) Net marginal revenue equals the sum of the marginal costs of the intermediate inputs. B) Marginal revenue equals the marginal cost of the final output. C) Net marginal revenue equals the marginal cost of each intermediate good. D) The sum of net marginal […]
Date: September 9th, 2020
In the dominant firm model, the smaller fringe firms behave like: A) competitive firms. B) Cournot firms. C) Stackelberg firms. D) Bertrand firms. E) monopolists. ANSWER A
Date: September 9th, 2020
If households pay a fixed annual fee for trash disposal, A) households will all tend to produce the same amount of garbage. B) households have no incentive to cut back on the amount of garbage they generate. C) that fee will provide households with an incentive to cut back on the amount of garbage they […]
Date: September 9th, 2020
If households could be charged differently for different types of garbage, A) the total amount of garbage would be reduced. B) recycling would be more difficult. C) costs of collecting garbage could be kept much lower. D) billing for garbage collection would be much easier. E) there would be a change in the types of […]
Date: September 9th, 2020
There are two techniques of egg production: free range (where hens roam around the farm) or factory (where hens are fed and watered in wire cages). The free range technique has a much more elastic supply curve than the factory technique. When the demand for eggs falls: A) egg production using the factory technique falls […]
Date: September 9th, 2020
