1)From the article: "Corning now expects to produce 150 million vials this year, a 50% increase from what it previously expected." An increase in the supply of glass vials would result in which of the following?

• A - A decrease in the price of glass vials, which would then increase the demand for glass vials.
• B - A surplus of glass vials because the supply of vials would be greater than the demand for vials.
• C - A decrease in the equilibrium price of glass vials and an increase in the equilibrium quantity of glass vials.
• D - A shortage of glass vials.
• E - A decrease in the consumer surplus that consumers receive from purchases of glass vials.

2)Carbon-dioxide emissions that contribute to global warming are examples of network externalities.

• A - True
• B - False

3)If the elasticity of supply for a product is less than 1.0, supply is said to be inelastic. If the elasticity of supply for a product is greater than 1.0, supply is said to be elastic.

• A - True
• B - False

4)A minimum wage is an example of a wage floor. Which of the following is a characteristic of a wage floor?

• A - At the wage floor there is a shortage of labor.
• B - A wage floor is set below the equilibrium wage rate.
• C - A wage floor is set where the labor supply curve is negatively sloped.
• D - A wage floor is set where the labor supply curve is perfectly elastic.
• E - A wage floor is set above the equilibrium wage rate.

5)From the article: "'It's getting to the point where I think we're cautiously optimistic and excited about what's going to transpire over the next few months,' Darden Chief Executive Eugene Lee told analysts on a conference call, citing the improving sales trends as more people receive Covid-19 vaccines." This statement implies that Mr. Lee believes:

• A - the demand for restaurant meals sold by Darden Restaurants will increase over the next few months.
• B - the marginal product of Darden Restaurants' employees will increase over the next few months.
• C - the demand for food sold by Darden Restaurants will be greater than the supply of food sold by Darden Restaurants over the next few months.
• D - there will be a decrease in the deadweight loss from meals sold by Darden Restaurants over the next few months.
• E - meals sold by Darden Restaurants are inferior goods.

6)The marginal revenue product of labor is the additional output a firm produces as a result of hiring one more worker.

• A - True
• B - False

7)If an increase in demand causes the price of platinum to increase:

• A - the supply of platinum will increase.
• B - the quantity supplied of rhodium, which is a byproduct of platinum mining, will decrease.
• C - the quantity supplied of platinum will not increase if the supply of platinum is perfectly elastic.
• D - the quantity supplied of platinum will not increase if the supply of platinum is perfectly inelastic.
• E - the quantity demanded of platinum will decrease.