An effective minimum wage is set
A. above the equilibrium level.
B. below the equilibrium level.
C. at the equilibrium level.
A. above the equilibrium level.
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The demand for a cup of coffee is ______________ than is the demand for a dinner at a fancy restaurant because _________________.
A. more price elastic; a cup of coffee requires a smaller portion of one's income. B. less price elastic; a cup of coffee requires a smaller portion of one's income. C. less price elastic; a cup of coffee is more of a luxury. D. more price elastic; a cup of coffee is more of a luxury.
The concept of utility maximization:
A. can be used broadly to think about choices made motivated by satisfaction, envy, status, or kindness. B. assumes each individual seeks to increase his own personal satisfaction regardless of others. C. is solely used to measure an individual's satisfaction with his consumption choices. D. None of these is true.
According to the "feedback critique":
A. the conduct of firms in an industry may affect the market structure. B. the conduct of firms in an industry may affect the firm's performance. C. market structure may affect the firm's conduct. D. All of the statements associated with this question are correct.
Legal or governmental restrictions that give monopolistic advantages to a firm include all of the following EXCEPT
A) franchises. B) environmental protection. C) exclusive ownership of an unimportant resource. D) patents.