Suppose there are 11 buyers and 11 sellers, each willing to buy or sell one unit of a good, with values {$14, $13, $12, $11, $10, $9, $8, $7, $6, $5, $4,}. Assume no transaction costs and a competitive market. At the optimal bid, ask spread, what is the total profit that the market maker makes?
a. $8
b. $12
c. $18
d. $20
c
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If the price level rises by 4 percent and workers' money wage rates increase by 2 percent, then the
A) quantity of labor supplied decreases. B) quantity of labor supplied increases. C) quantity of labor supplied does not change because there is no change in the real wage rate. D) the supply curve of labor shifts rightward.
Economists who have compared the incomes of never-married men and women have found that with equal amounts of human capital, ________
A) the wages of these two groups are the same B) men earn significantly more than women C) women earn significantly more than men D) men specialize more in home production
Entrepreneurship could best be classified as:
A. simple labor. B. highly specialized labor. C. creative labor. D. unskilled labor.
A pure monopolist:
A. will realize an economic profit if price exceeds ATC at the profit-maximizing/loss-minimizing level of output. B. will realize an economic profit if ATC exceeds MR at the profit-maximizing/loss-minimizing level of output. C. will realize an economic loss if MC intersects the downsloping portion of MR. D. always realizes an economic profit.