If quality-detection costs are very low,
a. lower quality products will tend to be outcompeted in the market, and the average quality will rise.
b. lower quality products will tend to be outcompeted in the market, but the average quality will fall.
c. higher quality products will tend to be outcompeted in the market, and the average quality will rise.
d. higher quality products will tend to be outcompeted in the market, and the average quality will fall.
a
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Describe how each of the following changes would affect the equilibrium in the labor market in terms of the level of the real wage and quantity of employment in equilibrium:
(a) Increased immigration leads to higher labor supply at each real wage (b) The effort curve makes a parallel shift upward (c) Labor productivity increases (that is, the marginal product of labor increases at each level of employment).
If the poor cannot afford proper medical treatment, an economist, for reasons of efficiency, would favor
a. giving the poor added income to spend as they see fit. b. paying doctors bonuses to treat the poor. c. paying the medical bills of the poor. d. giving the poor "medical stamps."
Demand deposits are ______.
a. money made by government fiat b. official legal tender c. account balances that are accessible on demand d. any balance at a financial institution
A demand curve:
A. shows the relationship between price and quantity supplied. B. indicates the quantity demanded at each price in a series of prices. C. graphs as an upsloping line. D. shows the relationship between income and spending.