On the graph above, suppose the labor market is in equilibrium at point 2, then the demand curve shifts down to the position shown on the graph
If the real wage has not changed, then the horizontal distance between points ________ measures the unemployment that results. A) 2 & 4
B) 2 & 1
C) 3 & 4
D) 6 & 4
B
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You are a major stockholder of a large corporation. You have news from a credible source that the company's earnings report is going to indicate record losses
If you and other major stockholders receive the same news, what is your likely behavioral response and what impact will that have on the price of the company's stock?
Macroeconomics is concerned with the behavior of all of the firms in a particular industry, while microeconomics focuses on a single firm in the same industry
Indicate whether the statement is true or false
Consumer surplus:
a. is minimized in market equilibrium. b. measures the value between the actual selling price of a product and the price at which sellers are willing to sell the product. c. measures the value between the price consumers are willing to pay for a product and the price they actually pay. d. measures the price at which sellers extract excess profits from consumers.
A head tax is an example of a proportional tax
Indicate whether the statement is true or false