According to Pigovian analysis, competitive behavior will result in overproduction of a good when
a. firms' activities create external costs.
b. people outside of market transactions benefit from those transactions.
c. property rights have been clearly and unambiguously assigned.
d. private and social marginal costs are identical.
a. firms' activities create external costs.
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Because of market power, wages are higher under monopsony than under competitive conditions
Indicate whether the statement is true or false
Studies of discrimination in baseball suggest that black players
a. suffered from discriminatory wage differentials several decades ago and those wage differentials persist today. b. suffered from discriminatory wage differentials several decades ago but those wage differentials have been eliminated. c. did not suffer from discriminatory wage differentials several decades ago but in recent years wage differentials have become evident. d. did not suffer from discriminatory wage differentials in the past and they do not suffer from wage differentials today.
Headline inflation:
A. is inflation measured using the retail price index. B. measures price changes with food and energy costs taken out of the basket. C. is inflation measured using the producer price index. D. measures the changes in prices for the entire market basket of the average urban consumer.
The equilibrium wage will definitely rise if:
a) Both the supply of labor and the demand for labor increase. b) Demand for labor increases and the supply of labor is constant. c) Demand for labor decreases and the supply of labor is constant. d) Supply of labor increases and the demand for labor is constant.