According to the figure above, if there is no income tax, the equilibrium real wage rate is ________ and the equilibrium hours of labor are ________
A) $20; 200 billion
B) $30; 250 billion
C) $30; 200 billion
D) $35; 200 billion
E) The equilibrium is not shown.
B
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
How does the demand curve perceived by a monopolist compare with the market demand curve?
A.One has a horizontal demand curve, the other is vertical. B.Both are horizontal C.One has a vertical demand curve, the other is downward sloping. D.They are essentially the same
In developing economic theories, principles, or models, economists:
a. ignore important variables. b. remove clutter and simplify. c. include all possible factors. d. consider every possible outcome.
Refer to Figure 22.3 for a perfectly competitive firm. If the market price is $15,
A. The firm will have above-normal profits. B. Economic profits will be zero. C. The firm should produce 39 units. D. The firm should shut down.