Positive externalities are _____ because their producers have no incentive to take the _____ into account
a. oversupplied; external cost
b. undersupplied; external benefit
c. oversupplied; external benefit
d. undersupplied; external cost
b
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Refer to the figure above. If the government sets the minimum wage rate at $35, the unemployment in the market will be:
A) 20 units of labor. B) 25 units of labor. C) 15 units of labor. D) 10 units of labor.
Which of the following best defines capital as a factor of production?
A) the gifts of nature that businesses use to produce goods and services B) the knowledge and skills that people obtain from education and use in production of goods and services C) financial assets used by businesses D) instruments, machines, and buildings used in production
In a study conducted by Marianne Bertrand and Sendhil Mullianthan, identical resumes were sent in response to help wanted ads in newspapers, with half of the resumes assigned an African-American-sounding name and half assigned a white-sounding name
The study found that A) employers were 50 percent more likely to interview workers with African-American-sounding names. B) employers were equally likely to interview workers with white-sounding names and with African-American-sounding names. C) employers were 50 percent more likely to interview workers with white-sounding names. D) no employers chose to interview workers with African-American-sounding names.
Efficiency wages, a Keynesian theory of unemployment, posits that wages higher than the equilibrium wage are a cause of unemployment.
a. True
b. False
Indicate whether the statement is true or false