In general, a fine on selling a product leads to the
A) supply curve shifting rightward.
B) supply curve shifting leftward.
C) demand curve shifting rightward.
D) demand curve shifting leftward.
Ques. 2Use the data in the table above and suppose that labor is the only variable factor of production. If each worker is paid 42.00 per day, what is the average variable cost to Decent Donuts of producing 122 dozen donuts per day?
A) 1.91
B) 2.16
C) 2.41
D) 3.06
Ques. 3If a 1 percent decrease in the price of a pound of squash results in a larger percentage decrease in the quantity supplied
A) demand is elastic.
B) demand is inelastic.
C) supply is elastic.
D) supply is inelastic.
Ques. 4In the above figure, the slope across the arc between c and d is
A) 1/2.
B) 1.
C) 4/3.
D) 2.
Ques. 5An exchange rate is the price of one country's currency in terms of another country's currency.
Indicate whether the statement is true or false
Ques. 6Give an example of how money functions as a unit of account.
What will be an ideal response?
Ques. 7Suppose two individuals, Pooh and Piglet, desire protection (provided by Tigger) for their community, The Hundred Acre Wood, from heffalumps. Protection is a public good.
The marginal cost of protection as well as Piglet's and Pooh's marginal benefits from protection are in the table above. What is the quantity of protection that achieves the maximum net benefit? A) 1 hour per day
B) 2 hours per day
C) 3 hours per day
D) 4 hours per day
Ques. 8If the demand curve for bottled water shifts rightward and the supply curve of bottled water shifts leftward, the equilibrium
A) price of bottled water definitely increases.
B) price of bottled water definitely decreases.
C) quantity of bottled water definitely increases.
D) quantity of bottled water definitely decreases.
Ques. 9A perfectly competitive firm is definitely making an economic profit when
A) MR < MC.
B) P > ATC.
C) P < ATC.
D) P > AVC.
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