Two students are assigned a group project. Each has the option to work or not work to achieve a high grade. The payoffs are shown in the above table. Student 1 should
A) work only if student 2 works.
B) work regardless of the decision made by student 2.
C) not work if student 2 works.
D) not work regardless of what student 2 decides.
B
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If workers become more productive as a result of a new technology, the demand for these workers will decrease because the firm will not need to hire as many
Indicate whether the statement is true or false
The marginal tax rate is defined as
a. tax liability divided by taxable income. b. tax liability multiplied by taxable income. c. the change in tax liability divided by the change in taxable income. d. the change in tax liability minus the change in taxable income.
When the price elasticity of demand is large in magnitude, a _____ increase in the price leads to a _____ reduction in the amount purchased and the demand curve is relatively ____.
A. slight; substantial; steep B. slight; slight; flat C. large; slight; steep D. slight; substantial; flat
Refer to Figure 6.4. Suppose that the market is currently in equilibrium and the government decides to impose a minimum price equal to price C in the graph. How will the equilibrium quantity and price change as a result of the price floor?
A. It won't. The price floor is above the equilibrium, so the market stays at equilibrium. B. It will cause a shortage because at the price floor, the quantity demanded exceeds the quantity supplied. C. It will cause a surplus because at the price floor, the quantity demanded is below the quantity supplied. D. It won't. The price floor is below the equilibrium, so the market stays at equilibrium.