Savings in our model are
A) durable consumption.
B) non-durable consumption.
C) postponed consumption.
D) money.
C
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Suppose that, for example in India, a minimum wage is instituted in the modern sector above the market clearing wage, while the rural traditional wage is market determined at a lower level than in the modern sector
(a) Describe the impact of this policy on the rural labor force, urban unemployment, and the rural wage. (b) Will the modern sector wage be equal to the traditional sector wage after markets equilibrate through migration? Explain. (c) What effect might moving costs have on the equilibrium you described in part (b)? (d) What effect might the introduction of factories to rural areas have no the equilibrium you described in part (b)?
A new U.S. tariff on imported steel would be likely to: a. raise the cost of production to steel-using American firms. b. generate tax revenue to the government
c. increase U.S. production of steel. d. all of the above
A student figured out that the HHI for an industry was 15,000. What is the proper conclusion?
A. The market is close to perfectly competitive or monopolistically competitive. B. There is free entry in the market. C. The student made some computational errors. D. The market is monopolistic.
A firm has explicit costs of $110,000 and total revenue of $120,000. Which of the following is true about the firm?
A) The firm is incurring an economic loss if implicit costs are $10,000. B) The firm is making a normal profit if implicit costs are $0. C) The firm might be making an economic profit but we need more information about implicit costs to know for sure. D) The firm is definitely making an economic profit because it must be minimizing its opportunity cost. E) The firm may be making an economic profit but only if implicit costs are negative.