Explain why consumers benefit from a merger between a monopoly producer and its monopoly supplier of labor
What will be an ideal response?
A monopoly supplier of labor sells labor at an inflated wage. If the output monopoly purchases the monopoly source of labor, it will internally price labor at the competitive wage.
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A need to make choices exists because of
a. scarcity of resources. b. the abundance of goods. c. unlimited human needs and wants. d. both scarcity of resources and unlimited human needs and wants.
According to the modern view, the impact of expansionary monetary policy will
a. be the same in the long run as in the short run. b. be the same regardless of whether the effects of the policy are anticipated or unanticipated. c. initially be an increase in real output if the policy is unanticipated, but in the long run, the primary result will be a higher price level (inflation). d. initially be an increase in prices if the policy is unanticipated, but in the long run, the primary result will be larger real output.
Earth Movers & Shakers operates 3 iron ore mines. The accompanying table shows each mine's total daily production and the current number of miners at each mine. All miners work for the same wage, and each miner in any given mine produces the same number of tons per day as every other miner in that mine. Total Tons Per DayNumber of MinersMother Lode10025Scraping Bottom3010Middle Drift7515 The opportunity cost of moving one miner from Scraping Bottom to another mine is:
A. 3 tons per day. B. 0 tons per day. C. 4 tons per day. D. 5 tons per day.
The comment that "the minimum wage should be raised to give working people in this country a fair wage" is an example of:
a. A normative economic statement b. The fallacy of composition c. A positive economic statement d. The after this, therefore because of this, fallacy