The figure above shows the market for fast food restaurant employees in a college town in a small nation to the East. The local Taco Bell pays its workers $12 an hour. This wage rate is
A) designed reduce the unemployment rate.
B) an effort to increase the demand for labor.
C) illegal because the equilibrium wage rate is $6 an hour.
D) an efficiency wage aimed at reducing employee turnover.
E) the actual equilibrium wage rate.
D
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Refer to Table 20-19. Looking at the table above, what is the approximate rate of growth of real average hourly earnings from 2014 to 2015?
A) 15% B) 4.4% C) -1.5% D) -4.8%
Suppose the price of an item in a perfectly competitive market is $3. For a firm in this market, MC = MR at an output of 100 units. The average total cost at this output level is $4 per unit, and TVC is $80. We may conclude that
A) the firm should shut down because TC > TR. B) the firm should continue to produce because P>AVC. C) the firm should shut down because its TFC is $320 and its TC is $400. D) the firm should shut down because other firms will enter the industry as the market is perfectly competitive.
The price of a typical basket of goods and services in one period divided by the price of the same basket in a different year is a(n)
a. price index b. TV-violence index c. employment index d. output index e. unemployment index
The act of firms working together to make decisions about price and quantity is called:
A. bulk ordering. B. artificial competition. C. collusion. D. price discrimination.