Because government bodies have the power to make up for inadequate supply of a good:
A. its presence as a producer is in virtually every market.
B. it can be efficiency enhancing in markets for public goods.
C. they have incentive to compete with local businesses.
D. None of these statements is true.
B. it can be efficiency enhancing in markets for public goods.
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If Hispanics are paid less than their marginal product, then
a. cooperation among firms can perpetuate this wage discrimination. b. employers can engage in discrimination at zero cost. c. nondiscriminating firms will hire more Hispanics. d. whites will be paid compensating differentials.
The monopolist faces the demand curve of ___________.
Fill in the blank(s) with the appropriate word(s).
Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Suppose Country B's population of workers increased to 600. Which of the following statements is now true?
A. Country B's production possibilities are now more limited because of crowding from having more workers. B. Country B's production possibilities curve has shifted straight out. C. Country B's production possibilities curve has rotated out for only production of iPods. D. Country B's production possibilities curve has shifted straight in.
Assume that taxes depend on income. The MPC is 0.8 and t is 0.4. If government purchases increase by $100 billion, the equilibrium level of output will increase by
A. $16.7 billion. B. $57.5 billion. C. $192.31 billion. D. $215.9 billion.