Product differentiation allows a firm to charge a higher price because the residual demand curve facing the firm
A) is more elastic than the residual demand curve without product differentiation.
B) is less elastic than the residual demand curve without product differentiation.
C) is horizontal.
D) shifts to the left.
B
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Discouraged workers are included in the
A. labor force category. B. unemployed category. C. not in the labor force category. D. employed category.
Figure 1A.2Refer to Figure 1A.2. The slope of the curve:
A. is negative. B. is positive. C. is zero. D. changes along the curve.
Which of the following is the purpose of a minimum wage?
a. To reduce the wage rates of high-income workers b. To keep a track of the changes in the wage rate in an unskilled labor market c. To deal with the problem of unemployment in the market d. To help increase the profits earned by the producers e. To raise the wage rate for the lowest income workers
_____ refers to the situation faced by an insurance plan whose costs steadily increase as worse risks migrate toward it and better risks migrate away
a. Adverse selection b. Lemons problem c. Moral hazard d. Death spiral