Refer to the above figures. An external cost exists. This will lead to a(n)
A) underproduction equal to Q1 minus Q2.
B) overproduction equal to Q4 minus Q3.
C) underproduction equal to Q4 minus Q3.
D) overproduction equal to Q1 minus Q2.
D
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Use the following graph, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product, to answer the next question.
Sd + Q is the product supply curve after an import quota is imposed. A quota of y?w will result in a decrease of consumer surplus equal to area(s)
A. E. B. E + F + G + H + J. C. K. D. E + F +K.
The face value of money or income is called its ________ value
A) external B) real C) marginal D) nominal
Using the demand schedule in the above table, if the firm's marginal cost is constant at $3.00, output for a perfectly price discriminating monopolist is
A) 2 units. B) 3 units. C) 4 units. D) 5 units.
A look at macroeconomic data across countries reveals that when economies experience recessions, unemployment rates rise, but wages fall very little, if at all. Which of the following is most likely to support this observation?
a. Wages are determined by the interaction of the forces of labor demand and supply. b. The demand for labor is derived demand and hence does not fall during recessions. c. The labor market usually exhibits perfect competition. d. The labor supply curve becomes perfectly inelastic during recessions. e. Long term labor contracts make the wage rates sticky downwards.