Suppose a monopolist produces output where total revenue is maximized. At that output, the price elasticity of demand for the monopolist's output is:
A. equal to one.
B. greater than or equal to one.
C. less than one.
D. impossible to determine without data.
Answer: A
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In November 2008, the air traffic controllers who work at Guam became unionized. What would NOT be a way for the union to influence labor demand?
A) Have monthly training which improves the marginal productivity of the air traffic controllers. B) Support minimum wage laws. C) Creating job certification which limits the number of newly certified air traffic controllers. D) Lobby the government to limit who can apply to be an air traffic controller in Guam to those who are certified through the union.
A maximin strategy
A) maximizes the minimum gain that can be earned. B) maximizes the gain of one player, but minimizes the gain of the opponent. C) minimizes the maximum gain that can be earned. D) involves a random choice between two strategies, one which maximizes potential gain and one which minimizes potential loss.
In the circular-flow diagram, the two types of markets in which households and firms interact are the markets for goods and services and the markets for factors of production
a. True b. False Indicate whether the statement is true or false
Long-run unemployment in the classical model is considered to be impossible because
A. the government will intervene to aid the unemployed. B. the labor supply is horizontal. C. flexible prices and wages keep workers fully employed. D. job placement and training programs are rampant in the United States.