In the classical model, and increase in tax on firms that hired labor would
a. decrease labor demand and the real wage and increase output.
b. decrease labor supply, increase the real wage, and decrease output.
c. decrease labor demand, decrease the real wage, and decrease output.
d. reduce real wages and increase output.
C
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The average cost curve
A. is the vertical summation of the AFC and the AVC curves. B. lies below the AVC curve. C. lies below the AFC curve. D. is the vertical summation of the MC and AVC curves.
According to the theory of utility maximization,
a. people who buy tap water apparently feel the additional benefit (compared with bottled water) offsets the additional cost b. people who buy bottled water apparently feel the additional benefit (compared with tap water) offsets the additional cost c. the marginal utility of the last gallon of bottled water consumed exceeds the marginal utility of the first gallon of tap water consumed d. the marginal utility of bottled water exceeds the marginal utility of diamonds e. bottled water must be more expensive (per gallon) than tap water
IPods and headphones are examples of which of the following?
a. Substitutes b. Inferior Goods c. Complements d. None of the above
On average in the United States, gift-giving during the Christmas holiday:
A. wastes about $20 billion. B. wastes about $100 billion. C. wastes about $40 billion. D. wastes about $50 billion.