Suppose the elasticity of labor demand is 0.6. Then a decrease in the wage rate will:
A. Decrease total wage income
B. Increase total wage income
C. Have no impact on total wage income
D. Have an indeterminate impact on total wage income
A. Decrease total wage income
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Using the table, what is the minimum price that Fred is willing to accept to supply 400 slices of pizza per month?
A) $3.50 B) $2.50 C) $3 D) $4
A monopolist is defined as
A) a firm with annual sales over $10 million. B) a large firm, making substantial profits, that is able to make other firms do what it wants. C) a single supplier of a good or service for which there is no close substitute. D) a producer of a good or service that is expensive to produce, requiring large amounts of capital equipment.
Which of the following is an example of market failure?
A. Negative externalities. B. Positive externalities. C. Public goods. D. All of these.
Exchange-rate stability is likely to be a more important goal for the central banks of:
A. countries where exports and imports make up a small total of all economic activity. B. the U.S. and Japan than most small developing countries. C. large, closed economies. D. emerging market economies than the central bank of the U.S.