An increase in the user cost of capital leads firms to ________ their profit by ________ their capital-output ratio
A) raise, increasing
B) raise, decreasing
C) lower, increasing
D) lower, decreasing
B
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The figure illustrates all of the following EXCEPT
A) if the union establishes by collective bargaining a wage rate that exceeds equilibrium at point Wu an excess quantity of labor will be supplied. B) if the union establishes by collective bargaining a wage rate that exceeds equilibrium, an excess quantity of labor will be demanded. C) there is a trade-off union leadership faces: Higher wages inevitably mean a reduction in total employment—a smaller number of positions. D) at higher wages, more workers will seek to enter the industry, thereby adding to the surplus of workers where QS is greater than QD.
Which of the following best describes the production function?
(a) TP = (Land, Labour, Capital, Savings). (b) TP = f (Land, Labour, Capital, Savings). (c) TP = (Land, Labour, Capital, Enterprise). (d) TP = f (Land, Labour, Capital, Enterprise).
The Darity-Myers thesis states that
A. he heritage of slavery is largely to blame for black poverty. B. welfare dependency creates a culture of poverty. C. black men have become less useful in the emerging economic order and have become marginalized. D. the root problem of black poverty is the high pregnancy rate of unmarried teenage girls.
There are two coal-burning electrical utilities-one in tiny, rural Moscow, Idaho, and another in metropolitan Detroit, Michigan-and each produces the same amount of pollution per unit of output. If a permit tax is going to be used to force these firms to internalize pollution costs, the tax levied should be
A. higher in Detroit than in Moscow. B. less than zero in each area. C. the same in each city. D. higher in Moscow than in Detroit.