________ dictates the lowest wage that firms may pay for labor
A) The black-market wage B) A maximum wage requirement
C) A minimum wage law D) A price-ceiling wage
C
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When a product is taxed,
A) part of the initial consumer surplus goes to the government as revenue. B) part of the initial consumer surplus becomes a deadweight loss. C) the producer surplus never changes because consumers pay taxes, not producers. D) Both answers A and B are correct. E) Both answers B and C are correct.
With respect to labor supply, the income effect leads a person to want to work more in order to raise his or her income
Indicate whether the statement is true or false
All of the following are true regarding moral hazard except which one?
A) It arises when parties to a transaction have conflicting objectives and the supervising parties cannot monitor the other parties. B) It typically occurs after participants have already entered into a contract or agreement. C) It is a situation in which individuals make hidden actions that benefit them at the expense of the other parties. D) Situations of moral hazard tend to be rare occurrences.
Give at least three examples from economics where you expect some nonlinearity in the relationship between variables. Interpret the slope in each case
What will be an ideal response?