Suppose the inverse supply curve in a market is Q = 6p2. If price decreases from 5 to 4, the change in producer surplus is A) 150. B) -54. C) -6. D) -122. ANSWER D
Date: September 9th, 2020
Sandy’s current consumer surplus for candy is 20. Candy is a normal good for her. When her income increases and the price of candy remains unchanged, her consumer surplus will A) increase. B) decrease. C) remain the same. D) Not enough information. ANSWER A
Date: September 9th, 2020
Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in producer surplus is A) 25. B) 5. C) 12.5. D) 20. ANSWER C
Date: September 9th, 2020
Of the combined Social Security tax rate, _____ goes to pay for _____. a. 2.9; Medicaid b. 2.7; Medicare c. 2.9; Medicare d. 2.7; Medicaid ANSWER c
Date: September 9th, 2020
A group of firms are selling undifferentiated products if A) consumers perceive the products identical between the firms. B) production costs are the same for all firms. C) the firms are selling goods that are identical, though consumers view them as different. D) the firms are part of a single cartel. ANSWER A
Date: September 9th, 2020
If the wage increases, the isocost line will A) stay the same. B) shift outward in parallel fashion. C) rotate inward around the point where only capital is employed in production. D) shift inward in parallel fashion. ANSWER C
Date: September 9th, 2020
When Social Security first began, the required contribution levels were _____. a. 2 percent of a worker’s pay for all income earned b. 2 percent of a worker’s pay for the first $3,000 of income earned c. 1 percent of a worker’s pay for the first $3,000 of income earned d. 1 percent of a […]
Date: September 9th, 2020
The concept of Nash equilibrium states that A) no firm can improve their outcome holding the other firm’s actions constant. B) all firms are earning the highest possible profit. C) firms make alternating output decisions. D) None of the above ANSWER A
Date: September 9th, 2020
How can break-even analysis be used to project the level of operation needed to achieve a targeted profit level? What will be an ideal response? ANSWER The targeted level of profit can be factored into the break-even equation as a fixed cost, and then determine the level of output and sales at which the […]
Date: September 9th, 2020
Suppose the market supply curve is p = 5 + Q. If price increases from 10 to 15, the change in producer surplus is A) 12.5. B) 5. C) 50. D) 37.5. ANSWER D
Date: September 9th, 2020
