Suppose there are 11 buyers and 11 sellers, each willing to buy or sell one unit of a good, with values {$14, $13, $12, $11, $10, $9, $8, $7, $6, $5, $4,}. Assume no transaction costs and a competitive market. At the optimal bid-ask spread, how many transactions would the market maker undertake in this market
a. two transacttions
b. three transactions
c. four transactions
d. five transactions
b
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The a firm's short-run cost curves shifts when there is a change in
A) technology B) the prices of factors of production C) the quantity of outputs D) Both answers A and B are correct.
The simplest economic definition of discrimination is
a. prejudice. b. unequal pay for equal work. c. a dislike by one group of associating with another group. d. unequal pay for unequal work.
When the difference between potential GDP and actual GDP increases, the nation usually suffers from increased inflation
a. True b. False Indicate whether the statement is true or false
Which of the following is not correct?
a. When a union is present in a labor market, wages may not be determined by the equilibrium of supply and demand. b. Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power. c. When unions raise wages above equilibrium, the quantity of labor supplied decreases, and the quantity of labor demanded increases. d. Most workers in the U.S. economy are not members of a union.