Is the number of sellers in the market the only thing that is different in each of the four market types economists study?
What will be an ideal response?
No, the number of sellers is not the only factor that differs; the degree of similarity of each firm's product also plays a role. For instance, in a perfectly competitive market, each firm sells an identical product whereas in a monopolistically competitive market, each firm sells a slightly different product.
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Which of the following is likely to lead to a right shift in the demand curve for labor in the coffee producing industry?
A) A decrease in the price of tea B) An increase in the demand for tea C) A decrease in the demand for coffee D) An increase in the demand for coffee
The market for unskilled labor is illustrated in the figure above. The market is in equilibrium and then a minimum wage of $5 per hour is imposed. Employment will fall by
A) 0 hours. B) 10 million hours per year. C) 20 million hours per year. D) 30 million hours per year.
When the Phillips curve was viewed as a structural relationship, it was believed that the Fed could
A) permanently reduce the unemployment rate if it were willing to accept an increase in the inflation rate. B) permanently reduce the inflation rate as it permanently reduced the unemployment rate. C) permanently reduce the unemployment rate if it were willing to increase the real interest rate. D) permanently reduce the inflation rate if it were willing to decrease the real interest rate.
Producer surplus is the:
a. amount by which the quantity supplied of a good exceeds the quantity demanded of a good. b. measure of producers' willingness to sell a good plus the price of the good. c. measure of how much producers value a good. d. amount consumers actually pay for a good minus the amount the sellers are willing to sell the good.