Question 1

In making labor supply decisions, households weigh

Accepted Answer

A)  the market wage against the value of market produced goods. 
B)  the market wage against the value of their marginal product of labor. 
C)  the market wage against the value of leisure and time spent in unpaid household production. 
D)  child care costs. 
A)  the market wage against the value of market produced goods. 
B)  the market wage against the value of their marginal product of labor. 
C)  the market wage against the value of leisure and time spent in unpaid household production. 
D)  child care costs.

Question 2

Assume that an economy producing two products, skateboards and in‐line skates, is initially in equilibrium, and that skateboards and in‐line skates are substitutes. If consumer preferences shift away from skateboards and toward in‐line skates, which of the following will not occur?

Accepted Answer

A)  In the short run, firms producing skateboards will incur losses. 
B)  In the short run, firms producing in‐line skates will earn a profit. 
C)  Additional capital will begin to flow into in‐line skates production in the long run. 
D)  Additional capital will begin to flow into skateboard production in the long run. 
A)  In the short run, firms producing skateboards will incur losses. 
B)  In the short run, firms producing in‐line skates will earn a profit. 
C)  Additional capital will begin to flow into in‐line skates production in the long run. 
D)  Additional capital will begin to flow into skateboard production in the long run.

In making labor supply decisions, households weigh

Assume that an economy producing two products, skateboards and in‐line skates, is initially in equilibrium, and that skateboards and in‐line skates are substitutes. If consumer preferences shift away from skateboards and toward in‐line skates, which of the following will not occur?

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Elasticity

Household Behavior and Consumer Choice

The Production Process: the Behavior of Profit-Maximizing Firms

Short-Run Costs and Output Decisions

Long-Run Costs and Output Decisions

Input Demand: the Labor and Land Markets

Input Demand: the Capital Market and the Investment Decision

Monopoly and Antitrust Policy

Oligopoly

Monopolistic Competition

Externalities, Public Goods, and Common Resources

Uncertainty and Asymmetric Information

Income Distribution and Poverty

Public Finance: the Economics of Taxation

International Trade, Comparative Advantage, and Protectionism

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

Exam 12: General Equilibrium and the Efficiency of Perfect Competition

In making labor supply decisions, households weigh

Assume that an economy producing two products, skateboards and in‐line skates, is initially in equilibrium, and that skateboards and in‐line skates are substitutes. If consumer preferences shift away from skateboards and toward in‐line skates, which of the following will not occur?

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Elasticity

Household Behavior and Consumer Choice

The Production Process: the Behavior of Profit-Maximizing Firms

Short-Run Costs and Output Decisions

Long-Run Costs and Output Decisions

Input Demand: the Labor and Land Markets

Input Demand: the Capital Market and the Investment Decision

Monopoly and Antitrust Policy

Oligopoly

Monopolistic Competition

Externalities, Public Goods, and Common Resources

Uncertainty and Asymmetric Information

Income Distribution and Poverty

Public Finance: the Economics of Taxation

International Trade, Comparative Advantage, and Protectionism

Economic Growth in Developing Economies

Critical Thinking About Research

Filters