In recent years, information technology such as computers and scanners have been a ________ for low-skilled labor and have led to ________ wage rates for low-skilled workers.
A) substitute; higher
B) substitute; lower
C) complement; higher
D) complement; lower
Ques. 2According to the quantity theory of money, in the long run, an increase in the quantity of money does not change real GDP but does raise the price level.
Indicate whether the statement is true or false
Ques. 3A free rider problem is created by private goods.
Indicate whether the statement is true or false
Ques. 4The point where the indifference curve is tangent to the budget line
A) is the best affordable point.
B) is where the marginal rate of substitution exceeds the relative price by as much as possible.
C) is a point on consumer's demand curve.
D) All of the above answers are correct.
Ques. 5For a perfectly competitive firm, in the long-run equilibrium
A) P = MC = ATC = MR.
B) MR = MC = AFC.
C) MR = P = ATC = AFC.
D) P = MC > ATC.
Ques. 6We are using resources efficiently if we can produce more of one good without producing less of some other good that we value more highly.
Indicate whether the statement is true or false
Ques. 7What is a natural oligopoly? How does it arise? Give an example.
What will be an ideal response?
Ques. 8Based on the above figure, for which of the following amounts of output at Ike's Ice Cream Kitchen does the average product of labor exceed the marginal product of labor?
A) at 10 gallons
B) at 40 gallons
C) at 70 gallons
D) all of the above
Ques. 9The figure above shows the market supply and market demand curves for pizza. If the market is at its equilibrium, what area in the graph above represents:
a) consumer surplus?
b) producer surplus?
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