The gap between the value a monopsony places on the last worker hired and the wage paid will increase when
A) the supply curve becomes more elastic at the optimum.
B) the supply curve becomes less elastic at the optimum.
C) the supply curve becomes horizontal.
D) the value of the last unit of labor hired is greater than the cost.
B
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Which of the following is not considered a rationale for the intervention of government in the market process in the United States?
A) the redistribution of income B) the reallocation of resources C) the long-run planning of scarce resources D) the short-run stabilization of prices E) All of the above
The income elasticity of demand for shoes is estimated to be 1.50 . We can conclude that shoes:
a. have a relatively steep demand curve. b. have a relatively flat demand curve c. are a normal good. d. are an inferior good.
Explain why GDP was never intended to be a measure of social well being
Comparative advantage explains why a nation will benefit from trade when:
A. it exports more than it imports. B. its trading partners are experiencing offsetting losses. C. it exports goods for which it is a high-opportunity cost producer, while importing those for which it is a low-opportunity cost producer. D. it exports goods for which it is a low-opportunity cost producer, while importing those for which it is a high-opportunity cost producer.