Christopher owns and manages a small tea shop. We assume that Christopher (i) does not directly care about the quantity of tea that he sells. (ii) does not directly care about the number of workers that he hires. (iii) wants to maximize the quantity of tea that he sells. (iv) wants to minimize the number of workers that he hires. (v) wants to maximize profits
a. (i) and (ii) only
b. (i), (ii), and (v) only
c. (iii) and (iv) only
d. (iii), (iv), and (v) only
b
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All else equal, when oil prices decrease, people are ________ to look for oil substitutes. This will ________ the number of years it will take to deplete the stock of oil
A) discouraged; increase B) discouraged; decrease C) encouraged; increase D) encouraged; decrease
On the graph above, assuming that G = 0 and NX = 0, the labeled point at which saving is lowest is point ________
A) A B) B C) G D) H E) not inferable from the information given
If a competitive market operates perfectly, it relies on:
A. the number of people buying goods. B. the laws of supply and demand. C. how many products can be produced for sale. D. how much people are willing to pay for the products.
If a union negotiates and obtains a wage rate above the competitive wage rate,
A. employment in the union sector will increase relative to employment in the nonunion sector. B. it must find a way to ration jobs among the excessive number of workers who wish to work in the union sector. C. unemployment will increase in the nonunion sector relative to the union sector. D. it must find a way to make workers more productive.