The above figure shows a competitive firm's demand for labor assuming that the firm's output sells for $1 per unit. If the wage is $5 per hour, a 2 percent cut in all the workers' income tax will cause the firm to
A) demand less labor.
B) demand more labor.
C) raise the wage paid to the worker.
D) None of above.
B
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When a government mandate sets the rental price of an apartment below the market clearing level, which of the following result?
A) More apartments are rented. B) Landlords attempt to make up for the lower rental income by charging more for security deposits and cleaning fees. C) Landlords discriminate less. D) Landlords address their tenant's requests in a more prompt manner.
Does economic growth overcome scarcity?
What will be an ideal response?
Managers should engage in an activity if, on average, it can be done for less that a dollar per unit
Indicate whether the statement is true or false
From society's perspective, the deadweight loss associated with a positive externality occurs because: a. producers bear the true cost of producing the good involved in the transaction
b. producers do not bear the true cost of producing the good involved in the transaction. c. consumers do not internalize the externality. d. consumers internalize the externality.