In 2008, Precision Pattern Interiors, which makes high-end aircraft interiors, began a 1 million renovation of a building at the Hutchinson Air Base Industrial Tract south of Yoder, Kansas.
The company will also add some 400,000 in new equipment and triple its Yoder work force. Which of Precision Pattern Interiors' decisions is a short run decision? A) triple its Yoder work force
B) 1 million renovation of a building at the Hutchinson Air Base Industrial Tract
C) 400,000 in new equipment purchases
D) All of these decisions are short run decisions.
Ques. 2There is no deadweight loss if the regulatory rule for a natural monopoly
A) is an average cost pricing rule.
B) sets price at a level that enables the regulated firm to earn a specified rate of return on its capital.
C) is a marginal cost pricing rule.
D) prevents the firm from engaging in any form of price discrimination.
Ques. 3With respect to redistribution, one reason The Big Tradeoff exists is because
A) government programs employ resources that could have been productive elsewhere.
B) government policymakers must choose between funding the various programs.
C) government programs only employ resources that had no value to society otherwise.
D) government programs only pay workers their opportunity cost.
Ques. 4The table above shows the marginal costs and marginal benefits of college education. With public provision of the efficient level of college education, tuition is
A) 10,000 per year.
B) 12,000 per year.
C) 14,000 per year.
D) 16,000 per year.
Ques. 5Some parents struggling with back-to-school buys. A couple of years ago, I was able to buy everything practically new, said Charles Lane-Bey, a U.S. Postal Service worker who's struggling to make ends meet.
Suppose Charles has 10 to spend on back-to-school clothing for his son, and pants cost 50 cents and shirts cost 1. Which of the following combinations of pants and shirts is affordable? A) 10 pants and 6 shirts
B) 7 pants and 7 shirts
C) 3 pants and 8 shirts
D) 6 pants and 2 shirts
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