The entry of China and other developing countries into the global economy ________ the value of marginal product of factory workers in the United States and ________ their wage rate
A) increases; lowers
B) decreases; raises
C) decreases; lowers
D) increases; raises
C
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When the price of bananas rises 2 percent, the quantity demanded of peanut butter falls 4 percent
a. What is the cross elasticity of demand between these two goods? b. How are these goods related? c. If the price of bananas rises, how will that affect the demand curve for peanut butter?
If a negative externality were present in a market, the social benefit curve would be:
A. above the private demand curve. B. below the private demand curve. C. the same as the private demand curve. D. Cannot say without more information.
Tina Eckstrom and her husband bought a deferred annuity that started paying them $700 a month in retirement benefits. They, along with millions of other people who live on fixed incomes, are examples of:
a. those who are responsible for inflation. b. the big winners from inflation. c. the big losers from inflation. d. the paradox of thrift. e. stock market losers.
Consider a single-price monopolist that is in equilibrium at output level Q* and price P*. If the government imposes a new tax on the firm of $25 per unit of output, then
a. output and price will remain at Q and P b. output will fall and price will rise by $25 c. output will fall and price will fall by less than $25 d. output will rise and price will fall by $25 e. output will fall and the price will rise by less than $25