In the classical model, a tax on labor supply will
a. decrease the demand for labor, increase the real wage, decrease output, and reduce the price level.
b. decrease the supply of labor, increase real wages, decrease output, and increase the price level.
c. decrease the demand for labor, the real wage, decrease output, and increase the price level.
d. have no effect on the labor market, but reduce output and increase the price level.
e. increase both labor demand and supply, which will increase output and the price level.
B
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Is it more efficient for a group of musicians to perform a show "unplugged" (with acoustic instruments) or with state-of-the-art electric instruments?
A) Unplugged is more efficient because the instruments are considerably less expensive to operate. B) It depends on what the musicians are trying to accomplish. C) The use of electric instruments is more efficient because acoustic instruments have become more expensive in recent years. D) It depends exclusively on the relative ratios of energy output to energy input in each instrument class.
Jim is haggling with a car dealer on the price of a used car. If the dealer is getting a bonus per sale made, in addition to the commission, the storekeeper's
a. Disagreement value increases b. Eagerness to agree increases c. Disagreement value decreases d. Both B&C
Some economists argue that monopolistically competitive markets are inefficient because:
a. the firms earn economic profits in the long run. b. the firms' marginal costs and marginal revenues are not always equal. c. firms do not produce the output rate that would minimize their average total cost. d. barriers to entry are high.
Trade allows all countries to achieve greater prosperity
a. True b. False Indicate whether the statement is true or false