When the labor force participation rate falls, the average wage in the economy is likely to increase. Why?
A. Educated workers are those most likely to leave the labor force.
B. Workers who have the worst wage options are those most likely to leave the labor force.
C. Wages do not consider salaried workers.
D. The most experienced workers are those most likely to leave the labor force.
E. The United States has a negatively skewed wage distribution.
Answer: B
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In a proportional income tax system
A) marginal tax rates are the same regardless of the level of taxable income. B) marginal tax rates increase as the level of taxable income increases. C) marginal tax rates decline as the level of taxable income declines. D) everyone pays the same dollar amount in taxes.
What is consumer surplus?
a. The maximum willingness to pay for a unit of a product b. The price that an individual pays in equilibrium for a product c. The difference between how much an individual is willing to pay for a product and how much he ends up paying d. How many units are traded in equilibrium
Which of the following goods' prices are not considered when calculating core inflation?
A. food B. housing C. clothing D. entertainment
To maximize its profit, a monopolistically competitive firm produces at the output level at which
a. its price elasticity of demand equals one. b. MR = MC. c. its D curve is tangent to its ATC curve. d. MR = AVC.