Regardless of the size of wealth and substitution effects for workers, the benefit of a wage subsidy will accrue disproportionately to workers if the labor supply curve is relatively more wage-inelastic than the labor demand curve.
Answer the following statement true (T) or false (F)
True
Rationale: The benefit of a wage subsidy is determined by the change in wages received by workers relative to wages paid by employers -- and is thus determined by the uncompensated labor supply curve.
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What three real-world complications keep purchasing power parity from being a complete explanation of exchange rate fluctuations in the long run? Explain
What will be an ideal response?
The money supply is best described as being:
A. determined by the amount of reserves. B. fixed, to avoid inflation. C. endogenously determined by the monetary system. D. determined by the size of the money multiplier.
A lump-sum tax would take different amounts from the poor and the rich
a. True b. False Indicate whether the statement is true or false
Marginal revenue equals marginal cost at an output of 15 units. At this output, marginal revenue equals $30, average variable cost equals $20, and average total cost equals $25. In the short run, a profit-maximizing firm will earn a profit of
A. -$75. B. $0. C. $75. D. $150.