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1. Days of Labour Units of Output 0 1 10 2 18 3 25 4 30 5 33 6 34 Refer to the table above. Suppose that the firm pays its workers $55 per day. Each unit of output sells for $12. How many days of labour should the firm hire? Select one: O a. 6 b. 3 ??? C. 4 d. 5

2. You are given the following lists of statements and concepts: Statement Concept 1. Marginal utility falls as consumption rises a. Unit elasticity of demand 2. Whatever the price, revenue is the same b. Constant returns to 3. Average costs are unchanged as output increases scale c. Market equilibrium 4. Quantity demanded equals quantity supplied d. Revenue 5. The product of price and quantity e. Diminishing marginal utility A AUSTRALIAN INSTITUTE.

3.Suppose that the album producers put it on sale for $10 each. How much will be the surplus or shortage? How many will be sold? There would be a surplus of A quantity of albums will be sold b. The maximum price at which the quantity actually sold in part (a) could have been sold is $ co the album producers had actually put the album on the market at the price mentioned in part (b), the resulting (Click to select) would be.

4.Use the equation for the IS curve shown in Section 1.2.3 to answer the following questions: (a) If we assume that 0