A competitive firm produces notebooks which sell in the market at $2 each. The firm hires 40 workers. If the market price of the notebooks increases to $3.5 each, which of the following statements is true?
a. The firm's labor demand curve will become flatter.
b. The firm's labor demand curve will shift outward parallel to itself.
c. The firm's labor demand curve will shift outward parallel to itself.
d. The firm's labor demand curve will become steeper.
B
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Which of the following industries has not undergone deregulation in recent years?
a. steel b. telephone c. airlines d. trucking e. banking
In Singapore, littering fines are strictly enforced. This is an example of a policy that
a. relies on moral codes to reduce the pollution externality. b. relies on the Coase Theorem. c. discriminates against foreigners. d. relies on incentives to reduce the pollution externality.
Which of the following would most likely cause the supply of wheat to increase?
What will be an ideal response?
Which of the following would cause E1 to move to E2?
a. P1 moving to P2 and D2 moving to D1
b. S1 moving to S2 and Q2 moving to Q1
c. P1 moving to P2 and Q1 moving to Q2
d. S1 moving to S2 and D2 moving to D1