The more inelastic the supply curve in a goods market, the smaller will be the deadweight loss from a per-unit tax in that market.
Answer the following statement true (T) or false (F)
True
Rationale: More inelastic supply curves translate into smaller reductions in market transactions from a per-unit tax -- which lowers the deadweight loss.
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Marginal utility is
A) the decrease in total utility from consuming more and more units of a good or service. B) the change in total utility a person receives from consuming an additional unit of a good or service. C) the change in total utility divided by the price of the last unit of a good or service consumed. D) the utility from consuming a given quantity of a good or service.
Over time, housing shortages caused by rent control
A.decrease, because the demand for and supply of housing are less elastic in the long run. B.decrease, because the demand for and supply of housing are more elastic in the long run. C.increase, because the demand for and supply of housing are more elastic in the long run. D.increase, because the demand for and supply of housing are less elastic in the long run.
Firm A is a monopoly. The demand for its output is p = 90 - Q. Production is such that Q = L. Firm A hires labor in a competitive market where the wage is $10. Firm A will hire
A) 10 units of labor. B) 20 units of labor. C) 30 units of labor. D) 40 units of labor.
The so-called 90-10 ratio (the hourly wage at the 90th percentile compared to that at the 10th percentile) was roughly how much in 2007?
A. 2.5 B. 4.5 C. 8.0 D. 10.5