Deadweight loss is present in both competitive and monopoly markets.
a. true
b. false
Answer: b. false
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Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a theater ticket. If the price of one of the tickets is $10
A) only Anya and Basil will buy tickets. B) Celeste's consumer surplus is $25. C) the total consumer surplus from the purchase of tickets will be $61. D) everyone will buy a ticket except for Esther.
When there is an inflationary gap there is
A. too much spending and taxes should be raised. B. too much spending and taxes should be lowered. C. too little spending and taxes should be raised. D. too little spending and taxes should be lowered.
If the population of a country is 1,000,000 people, its labor force consists of 600,000, and 60,000 people are unemployed, the unemployment rate is:
A. 6.0 percent. B. 6.6 percent. C. 10.0 percent. D. 60.0 percent.
Suppose the MRP of the 49th worker at a firm is $25 and that the market wage rate is $15. We know that if this firm operates in perfectly competitive product and labor markets
A. the firm is paying wages above the minimum wages. B. the firm would be more profitable if it hired more workers. C. the firm's profits would increase if it fired some workers. D. the firm should use more capital.