In the figure above, the combination of computers and televisions shown by point X
A) is not attainable at the point in time for which the graph is drawn.
B) can be attained only if some of societies resources are unemployed.
C) suggests that the law of increasing relative costs does not hold.
D) results only because society allocates its resources inefficiently.
A) is not attainable at the point in time for which the graph is drawn.
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Assume the government reduces your welfare check by $1 for every $2 that you earn on the job while on welfare. How will this tax affect your labor supply decisions? What is the implicit tax rate of such a policy?
What will be an ideal response?
The elasticity of demand for employees is -0.50. It is also estimated that the existing minimum wage (price floor) has increased the raise the wage by 25% above equilibrium wage
How much would the employment change if the price floor was eliminated? A) Employment would decrease by 12.5%. B) Employment would increase by 12.5%. C) Employment would decrease by 25%. D) Employment would increase by 25%.
Suppose residents of Toadhop live on the Quabache River, a river prone to flooding. Suppose there are 1000 (type A) people who value flood control more than the 1000 (type B) people. Type A Demand QD = 100 ? P Type B Demand QD = 50 ? P Where Q measures the quality of flood control. If the price of a unit of flood control is $100,000 and the citizens of Toadhop gather for a townhall meeting to
find the socially optimal level of flood control, and they are successful, how much will type B individuals contribute per unit of flood control? a. 25 b. 50 c. 75 d. 100
A decrease in the prices of two products that a consumer buys out of a constant budget would cause the consumer's:
A. Indifference curves to shift outward from the origin B. Indifference curves to shift inward to the origin C. Budget line to shift outward from the origin D. Budget line to shift inward to the origin