There is a technological advance in the production of digital watches. This will cause:
a. demand to increase.
b. supply to increase.
c. demand to decrease.
d. supply to decrease.
e. the price to increase.
b
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According to the median-voter theorem, the chosen policy will be the one preferred by the:
A. median voter. B. greatest average of voters, rather than the majority of voters. C. the average voter, rather than the largest number of voters. D. largest number of voters, rather than the average voter.
If demand is estimated to be Qd = 240 - 6P, the marginal revenue function is
A. MR = 240 - 6P. B. MR = 240 - 2Q. C. MR = 240 - 12P. D. MR = 40 - 2P. E. MR = 40 - 0.33Q.
When a worker and firm are matched on the hedonic wage function, it is implied that
A. the firm could increase its profits by offering a safer job as doing so would allow the firm to lower the wage it pays. B. the hedonic wage function must be very steeply sloped to ensure that the worker does not accept a better paying job. C. the worker receives no surplus from the match. D. the worker-firm match is efficient in the sense that neither the worker nor the firm could become better off with a different match. E. the worker cannot receive a higher wage at any other firm.
The formula q/L represents
A. the average product of labor. B. total product. C. the marginal product of labor. D. the capital-to-labor ratio.