Suppose a government policy is put in place offering an additional six months of generous unemployment benefits for employees who are laid off. How would we expect this to impact the labor supply?
Ans: Labor supply decreases.
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Assume the four major grocery stores in a large metropolitan area decide to meet secretly to fix prices for meat. It would be easiest to maintain this arrangement when:
A) the number of additional competitors is very small. B) the cost conditions for the four firms differ substantially. C) individual firms are able to offer secret price discounts to selected buyers. D) demand for meat and fresh vegetables is falling.
Discrimination raises the average wage of members of one group of workers in spite of laws that require equal pay for all workers
a. True b. False Indicate whether the statement is true or false
An increase in nominal GDP
A) is absolute real economic growth. B) is per capita real economic growth. C) is both per capita and absolute real economic growth. D) does not necessarily mean either absolute or per capita real economic growth.
Answer the following statement(s) true (T) or false (F)
1. Welfare effects are the gains and losses associated with government intervention in markets 2. Without a tax, tax revenues are zero. 3. When a tax gets larger, deadweight loss gets much smaller. 4. Other things being equal, the more elastic the demand or the supply curve, the smaller the eadweight loss. 5. The Law of Increasing Opportunity Cost refers to the condition where the opportunity cost of producing additional units of a good rises as society produces more of that good