If the desired reserve ratio rises, the money multiplier :

If the desired reserve ratio rises, the money multiplier
 
  A) decreases.
  B) increases.
  C) stays the same.
  D) probably changes but more information is needed to determine if it increases or decreases.

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Ques. 2

The producer surplus on a unit of output is the difference between the market price and the opportunity cost of producing it.
 
  Indicate whether the statement is true or false

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Ques. 3

Which of the following is NOT necessary for a firm to engage in price discrimination?
 
  A) The firm must be able to identify different types of buyers.
  B) The firm must be able to separate buyers by preventing resales from one customer to another.
  C) The firm must produce output for different buyers at different costs.
  D) The firm must sell a product that cannot be resold.

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Ques. 4

Can a firm achieve technological efficiency without achieving economic efficiency?
 
  What will be an ideal response?

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Ques. 5

In the figure above in the market for high-skilled labor, the equilibrium wage rate is
 
  A) 16.
  B) 8.
  C) 20.
  D) 28.

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Ques. 6

Marginal cost eventually increases because
 
  A) of the law of diminishing returns.
  B) eventually each additional worker produces a successively smaller addition to output.
  C) the marginal product of the variable input eventually falls.
  D) All of the above answers are correct.

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Ques. 7

A minimum wage set above the equilibrium wage rate has no effect.
 
  Indicate whether the statement is true or false

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Ques. 8

Product development is efficient if the
 
  A) new product actually brings great benefits to the consumer.
  B) producer's marginal cost of product development equals the consumer's marginal benefit.
  C) producer surplus from selling the product equals the consumer surplus.
  D) average cost of the product development equals the average revenue generated.