Keynes thought that the major economic reason for the Great Depression was
A. the existence of labor unions.
B. a lack of investment due to poor profit expectations.
C. the existence of monopolies.
D. high interest rates.
B. a lack of investment due to poor profit expectations.
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Refer to the table above. What is the surplus in the market when the price of a notebook is $9?
A) 16 units B) 20 units C) 24 units D) 26 units
Some proponents of trade sanctions argue for changes in policy because they fear low standards will be used to capture markets and foreign investment
While theoretically possible, there is little or no support for the view that countries use low labor standards this way, because A) countries with low labor standards generally have trouble attracting foreign investment. B) low standards can reduce costs, but they cannot change a country's comparative advantage. C) it is impossible to lower labor standards. D) Both A and B are correct. E) A, B, and C are all correct.
Other things constant, if the demand for computer scientists rises,
a. the wages of computer scientists will tend to fall. b. employment of computer scientists will tend to rise. c. there will be a surplus of computer scientists. d. there will be a shortage of computer scientists.
The above figure shows the market for fertilizer. When fertilizer is applied to lawns, it runs off into neighboring streams and ponds, killing fish and creating an external cost
a) What is the equilibrium price and quantity of fertilizer in an unregulated, competitive market? b) What is the efficient quantity of fertilizer? c) Suppose government imposes a tax equal to the marginal external cost. What is the equilibrium price paid by consumers and the equilibrium quantity after implementation of the tax? d) At the output level in part (c), how much is the tax? e) How much tax revenue does government collect? f) What is the deadweight loss borne by society if the externality is left uncorrected?