Concerning the labor market and taxes on labor, economists disagree about
a. the size of the tax on labor.
b. the size of the deadweight loss of the tax on labor.
c. whether or not a tax on labor places a wedge between the wage that firms pay and the wage that workers receive.
d. All of the above are correct.
b
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The market price of a factor of production that is in fixed supply is determined only by demand
Indicate whether the statement is true or false
One of the major motivations for labor resistance to productivity enhancing changes in a production process is the resulting threat to job security
Indicate whether the statement is true or false
Which of the following is NOT a reason why a monopoly might be regulated?
A. To reduce the inefficiency associated with profits B. To limit prices in important markets with economic or political consequences C. To deal with the negative consequences of government-created monopolies D. To ensure that a good is produced at least cost
The classical theory of inflation:
A. shows neutrality of money in the long run. B. describes a long-run equilibrium. C. explains the direct relationship between money supply and the price level. D. All of these statements are true.