If the equilibrium wage is below the actual wage:
A. the demand for labor will increase.
B. the demand for labor will decrease.
C. the wage rate will fall.
D. the wage rate will rise.
Answer: C
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The consumer surplus enjoyed by the winner of a first-price sealed-bid auction is equal to the difference between ________
A) his value for the item being auctioned and the value of the lowest bid B) his bid and the second-highest bid C) his maximum willingness to pay for the good and his bid D) his bid and the market price of the item
Countries that use the euro as their currency face similar concerns as countries did during the years of the gold standard in that each are (were)
A) using a floating currency. B) unable to conduct fiscal policy. C) unable to conduct monetary policy. D) using currency which is backed by gold.
To successfully price discriminate, a firm must ensure that there are no opportunities for arbitrage
Indicate whether the statement is true or false
An individual will never buy complete insurance if
a. he or she is risk averse. b. he or she is a risk taker. c. insurance premiums are fair. d. under any circumstances.