Why do wild salmon populations face the threat of extinction while goldfish populations are in no such danger?
No one owns the wild salmon, while private individuals own goldfish. The profit motive leads to different allocations of the resources. Salmon fishermen have an individual incentive to catch as many salmon as possible before someone else does. Pet shop owners have a profit incentive to breed goldfish to sell to consumers.
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What is a major reason international trade is restricted?
A) rent seeking B) to allow competition with cheap foreign labor C) to save jobs D) to prevent dumping E) to eliminate monopolies
An increase in the price level causes
A) the money demand curve to shift to the left. B) a movement up along the money demand curve. C) a movement down along the money demand curve. D) the money demand curve to shift to the right.
Firm A is a monopsonist that faces a labor supply elasticity of 2.4 whereas Firm B is a monopsonist that faces a labor supply elasticity of 1.4. Which of these monopsonists pays a higher wage?
A) Firm A B) Firm B C) They both pay the same. D) It is impossible to tell which pays a higher wage.
In order to regulate a monopoly's price the government
A) needs to hire former executives from the monopoly. B) should rely on industry experts for information. C) needs accurate information on the monopoly's demand and cost curves. D) needs to know the monopoly's supply curve.