OC userin Economics·15 Dec 201736. If a rise in price results in a decrease in total revenue, then the price elasticity of demand is A) negative. B) zero. C) greater than zero but less than 1. D) equal to 1. E) greater than 1.
OC userin Economics·13 Dec 201716) Suppose the government establishes a ceiling on the price of rental accommodation that is lower than the free-market equilibrium price. In this case, A) construction of new rental units will be encouraged. B) the rental housing market will be unaffected. C) those people who obtain rental units at the ceiling price will benefit. D) a surplus of current rental units will develop. E) the current stock of rental housing will be better maintained as there is a shortage of housing.
OC userin Economics·14 Dec 2017Use the figure below to answer the following questions. Price (dolars per pizza) Quantity (thousands of pizzas per week) Figure 3.2.2 S) Which one of the following would result in the demand curve shifting from D1 to D2 in Figure 3.2.22 A) an increase in the supply of pizza B) a rise in the price of Coke, a complement of pizza c) a fall in the price of pizza D) a rise in the price of hamburgers, a substitute for pizza E) a rise in the price of pizza
OC userin Economics·12 Dec 2017Capital Goods Consumer Goods FIGURE 1-3 2) Refer to Figure 1-3. Suppose that the relevant production possibilities boundary is the one labeled B. This boundary implies that A) the concept of opportunity cost is not at work in this economy. B) the opportunity cost of producing either capital goods or consumer goods does not depend on how much of each good is produced. C) consumer goods are preferred to capital goods. D) in this society the resources are not efficiently employed. E) capital goods are preferred to consumer goods.
OC userin Economics·14 Dec 201723) Any two individuals will gain from exchange A) unless one has an absolute advantage in producing all goods. B) unless they have different opportunity costs for producing all goods. C) if each specializes in the production of the good for which he has the higher opportunity cost. D) unless they have the same opportunity costs for producing all goods. E) unless they have the same absolute advantage in producing all goods.
OC userin Economics·13 Dec 20172) Refer to Figure 1-1. For the government, the opportunity cost of one search and rescue helicopter is A) 0 kilometres of highway repair. B) 50 kilometres of highway repair. C) 100 kilometres of highway repair. D) 150 kilometres of highway repair. E) 200 kilometres of highway repair.
OC userin Economics·13 Dec 20172) Suppose the minimum wage is $4 per hour, and 1,100 units of labour are hired. Then the government raises the minimum wage to $6 per hour, and 900 units are now hired. Choose the correct statement. A) Total wages paid to workers has fallen. B) There is unemployment in this labour market. C) The quantity of labour supplied is greater at the higher minimum wage. D) The price elasticity of demand for labour is 0.5. E) all of the above except A.
OC userin Economics·14 Dec 201733. French fries and hamburgers are complements. Suppose the cost of the ingredients used to make hamburgers rises, so that the price of a hamburger rises. Then the equilibrium relative price of french fries and the equilibrium quantity_ A) rises; increases B) rises; decreases C) falls, increases D) falls; decreases
OC userin Economics·11 Dec 2017Firm B Produce 1000 Units Produce 2000 Units Produce 1000 Units (100, 100) (10, 150) Firm A Produce 2000 Units (150, 10) (30,30) TABLE 11-3 36) Refer to Table 11-3. The Nash equilibrium in this game is A) (Firm A: produce 1000 units, Firm B: produce 1000 units). B) (Firm A: produce 2000 units, Firm B: produce 1000 units). C) (Firm A: produce 2000 units, Firm B: produce 2000 units). D) (Firm A: produce 1000 units, Firm B: produce 2000 units). E) non-existent.
OC userin Economics·12 Dec 201732. In response to rapidly rising rents, a Canadian province passes a law instituting rent controls. A newspaper makes the following three statements about this policy. Which of these statements are true? 1. Some people who want to rent apartments will be made better off by this policy. II. We can expect that some renters will try to make illegal payments to landlords. 11. In the long run, the government will be able to climinate rent controls because entrepreneurs will be anxious to build new apartment buildings. (A) only I (B) only II (C) only III ((D) I and II (E) II and III (F) I and III (G) I and II and III (H) none of the statements are correct
OC userin Economics·14 Dec 201732. Compared to competitive firms, the demand curve for the monopolist will be a. as elastic. b. more elastic. c. less elastic. d. perfectly elastic. e. perfectly inelastic.
OC userin Economics·13 Dec 201724. Suppose the Lethbridge Computer Company decides to increase the quantity of computers it sells by 6 percent. If the price elasticity of demand is 3.5, the company must A) raise the price of a computer by 1.714 percent. B) raise the price of a computer by 0.21 percent. C) lower the price of a computer by 0.21 percent. D) lower the price of a computer by 0.58 percent. E) lower the price of a computer by 1.714 percent.
OC userin Economics·12 Dec 201723. By the phrase "invisible hand”, Adam Smith was expressing the idea that a. there are no economic conflicts among nations. b. there would be no economic conflicts among nations if countries would eliminate tariffs. c. legal and political systems often influence market outcomes. d. business executives have a natural interest in keeping prices down and preventing inflation. e. by pursuing their own self interests, people frequently promote the interests of society.
OC userin Economics·12 Dec 2017The diagram below shows two production possibilities boundaries for Country X. PPB2 A PPB Capital Goods Consumer Goods FIGURE 1-3 38) Refer to Figure 1-3, and assume the country faces PPB). At point B, A) the price of capital goods is higher than the price of consumption goods. B) Country X is producing too many consumption goods and too few capital goods. C) the price of consumption goods is equal to the price of capital goods. D) the opportunity cost of producing an extra unit of capital goods is higher than at point A. E) the opportunity cost of producing an extra unit of consumption goods is higher than at point A.
OC userin Economics·11 Dec 201715 Hamburger and French fries (deep fried potatoes) are complementary goods in consumption. Suppose that the price for potatoes increases after a change in supply for potatoes in the potato market. Given this we would expect that the equilibrium price of hamburgers will and the equilibrium quantity of hamburgers will A. increase increase B. decrease; increase C. decrease; decrease D. not change; increase E. increase; decrease