The above table shows the total product schedule for the campus book store. If each employee is paid 6 per hour and there are no other variable costs, then at what level of books sold per hour does the marginal cost begin to increase?
A) 41 books per hour
B) 59 books per hour
C) 73 books per hour
D) 90 books per hour
Ques. 2If penalties are imposed only on the buyers of illegal drugs, the equilibrium price of illegal drugs will ________ and the equilibrium quantity will ________.
A) rise; increase
B) rise; decrease
C) fall; increase
D) fall; decrease
Ques. 3When the price of perfume changes from 24 to 26, the quantity supplied increases from 100 jars to 150 jars. What is the elasticity of supply of perfume?
A) 0.04
B) 25.0
C) 5.0
D) 0.2
Ques. 4If a market is shared equally by four firms, the Herfindahl-Hirschman Index is
A) 1/4.
B) 4.
C) 25.
D) 2,500.
Ques. 5The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of sandwiches, which for consumers are substitutes for pizza?
A) Figure A
B) Figure B
C) Figure C
D) Figure D
Ques. 6The Keynesian theory of business cycle views volatile expectations of future sales and profits as the main source of economic fluctuations.
Indicate whether the statement is true or false
Ques. 7The figure above provides information for a factory that produces chemicals that pollute a waterway. The waterway is used by water skiers.
If the waterway is owned by a water ski club and the Coase theorem applies, then the factory will produce ________ tons of chemicals a week. A) 1 ton
B) as many tons as possible
C) 3 tons
D) 5 tons
Ques. 8An increase in the U.S. interest rate differential increases the demand for dollars.
Indicate whether the statement is true or false
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