A firm competing in a perfectly competitive labor market desires to maximize
A. marginal profit, not total profit.
B. average profit, not marginal profit.
C. total profit, not marginal profit.
D. marginal profit, not average profit.
Answer: C
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Which institution tends to increase specialization in society?
A) Barter B) Government planning bureaus C) Money D) Price regulation
Other things being equal, the effect of a decrease in the price of Coca-Cola would cause which of the following?
a. A rightward shift in the demand curve for Coca-Cola. b. A downward movement along the demand curve for Coca-Cola. c. A leftward shift in the demand curve for Coca-Cola. d. An upward movement along the demand curve for Coca-Cola.
Which of the following statements about quotas is correct?
a. They benefit domestic consumers through lower prices. b. They benefit domestic producers through higher prices. c. They raise world output. d. They cause outward shifts in the domestic and foreign production possibilities frontiers. e. They benefit domestic producers through increased competition that stimulates innovation.
In the United States, the minimum wage is defined as
A. the lowest hourly wage rate a firm may legally pay its workers, as legislated by the U.S. government. B. the wage that the youngest job entrant into the job market makes. C. the wage ceiling above which a firm no longer must pay its employees additional benefits. D. the lowest wage that a corporation should pay a worker if the corporation wants to ensure that its employees are well trained.