Suppose both countries illustrated in Figure 35.1 specialized completely in the good they could produce with the lowest opportunity cost. What would the total production of motorcycles be?
A. 3,000.
B. 4,000.
C. 2,000.
D. 8,000.
Answer: B
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The "fair results" view of fairness says that a minimum wage law set above the equilibrium wage rate is unfair because the minimum wage
A) does not apply to all workers. B) boosts the income of highly skilled workers. C) benefits only those workers who are able to find and keep a job. D) benefits nobody. E) cannot be enforced.
A technological advance that increases labor productivity will:
a. decrease the supply of labor as fewer workers are needed. b. increase the demand for labor as MP rises. c. decrease the demand for labor as fewer workers are needed. d. lower wages.
For consumers, most market activity can be explained by the goal of:
A.) Charitable responsibility. B.) Maximizing income. C.) Profit maximization. D.) Maximizing happiness.
If we use a narrow definition of monopoly, then a monopoly is defined as a firm
A) that has been granted special production rights by the government. B) that can ignore the actions of all other firms because it produces a superior product compared to its rivals' products. C) that can ignore the actions of all other firms because it produces a product for which there are no close substitutes. D) that has the largest market share in an industry.