If the government allowed only one airline to serve the entire U.S. market, there would be a _____ loss associated with _____ efficiency in the airline industry.
a. marginal; reduced
b. deadweight; reduced
c. total; increased
d. deadweight; increased
b. deadweight; reduced
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A normal good is a good for which the demand increases as income decreases, holding everything else constant
Indicate whether the statement is true or false
Suppose that ABC Industries, a perfectly competitive firm, currently produces 500 units of imitation ham spread for a total cost of $1,500 . The marginal cost of the 500th unit is $20, and the marginal revenue of the 500th unit is $15 . To maximize profits, Cheapo Industries should:
a. continue to produce 500 units. b. produce more than 500 units but less than 1500 units. c. produce less than 500 units. d. produce more than 1500 units. e. stop producing at 500 units.
A group of firms working together and acting as a supplier of a product is called a cartel. A group of employees working together and acting as a single supplier of labor is called a
The figure above shows the U.S. supply of labor curve. What was the effect of the decline in birth rates during the 1960s and 1970s on the supply of labor curve in the 1980s?
A) a leftward shift of the supply of labor curve B) a rightward shift of the supply of labor curve C) a movement downward along the supply of labor curve from a point such as A to a point such as B D) The supply of labor curve became steeper. E) None of the above answers is correct because there was no change in the supply of labor curve.