A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule:
Refer to the above table. In moving stepwise from possibility A to B to C … to F, the opportunity cost of a unit of steel in terms of wheat:
A. Increases
B. Decreases
C. Remains constant
D. Increases at first then decreases
Answer: A
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Suppose a monopoly's inverse demand curve is P = 100 - Q, it produces a product with a constant marginal cost of 20, and it has no fixed costs. Compared to the consumer surplus if the market were perfectly competitive, consumer surplus is how much less when the monopolist practices perfect price discrimination?
A) 3200 B) 1600 C) 800 D) 0
Which one of the following people would not be considered by the BLS a part of the labor force?
a. a steel worker who was laid off last week and is seeking work b. a steel worker who was laid off last year and is no longer seeking work c. a student who also works part-time d. a member of the U.S. Navy e. a retired college professor paid to teach a summer course