On December 10 the price of a Christmas tree is 50 and 100 trees are purchased. On December 20 the demand for Christmas trees decreases so that the price falls to 30 and 20 trees are purchased. From this set of facts, the
A) demand for Christmas trees is price inelastic.
B) demand for Christmas trees is price elastic.
C) supply of Christmas trees is inelastic.
D) supply of Christmas trees is elastic.
Ques. 2In a contestable market with one firm in the market, the existing firm will
A) set its price equal to the monopoly price.
B) set its price lower than the monopoly price.
C) set its price higher than the monopoly price.
D) have a demand curve that is horizontal at the price that will attract new firms to enter the market.
Ques. 3In the above table, the total cost of producing 9 units of output is
A) 20.
B) 30.
C) 50.
D) 70.
Ques. 4New technology
A) definitely increases a firm's demand for labor.
B) definitely decreases a firm's demand for labor.
C) definitely does not change a firm's demand for labor.
D) could increase or decrease a firm's demand for labor.
Ques. 5A modified version of utilitarianism proposed by John Rawls states that
A) the distribution of the economic pie is fair if the rules are fair.
B) the distribution of the economic pie is fair if it achieves the greatest happiness for the greatest number of people.
C) the fair distribution of the economic pie is the one that makes the poorest person as well off as possible.
D) goods may be transferred from one person to another only by voluntary exchange.
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