In comparing growth rates of money growth and inflation across countries, the long-run proposition of the quantity theory of money is supported.
Indicate whether the statement is true or false
Ques. 2In the above figure, the efficient quantity is
A) 0 units.
B) 70 units.
C) 80 units.
D) 100 units.
Ques. 3The concept of rational ignorance can explain why the government might provide more than the efficient quantity of a public good.
Indicate whether the statement is true or false
Ques. 4The marginal cost curve passes through the ________ points of the ________ cost curve and the ________ cost curve.
A) minimum; average total; average variable
B) minimum; average total; average fixed
C) maximum; total cost; total variable
D) minimum; average variable; average fixed
Ques. 5If the marginal social benefit of pizza exceeds the marginal social cost of pizza, the economy is producing the efficient quantity of pizza.
Indicate whether the statement is true or false
Ques. 6In the Village of Punjab, Sheryl owns a well, which is the only source of drinking water. The supply of water is perfectly inelastic at a quantity of 1,000 gallons of water per day.
At a price of 2.00 per gallon, the quantity demanded per day is 1,000 gallons. The government imposes a 0.50 per gallon tax.
a) After the tax is imposed, what is the price paid by the villagers? What is the price received by Sheryl?
b) How much revenue does the government collect?
c) What fraction of the tax does Sheryl pay? What fraction is paid by the villagers?
Ques. 7The table above shows the demand for labor and supply of labor schedules for low-skilled labor. If the labor market is competitive, what is the wage rate of low-skilled labor and what is the quantity of low-skilled labor employed?
A) 6 an hour; 60 hours a day
B) 6 an hour; 65 hours a day
C) 4 an hour; 70 hours a day
D) 4 an hour; 55 hours a day
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