Which of the following is an example of a firm's derived demand?
a. The wage that a worker earns is a function of her human capital.
b. A firm's demand for college textbook study guide authors is inseparably linked to the supply of college textbooks.
c. Factors that increase the demand for labor will increase the equilibrium wage.
d. All of the above are correct.
b
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The cost of producing a tube of tooth paste is $0.05. If the market for tooth paste is monopolistically competitive, a manufacturer who charges $0.05 for each bottle will ________
A) shut down production in the short run B) exit the industry in the long run C) incur a loss in the short run D) earn zero economic profits in the short run
One reason why the spending side of the budget is more susceptible to special interests than the tax side is because _____
a. spending can be allocated geographically, but taxation cannot b. tax programs are largely determined by the Internal Revenue Service, not Congress c. people do not care about taxation d. the administrative costs of spending programs are lower, making change cheaper
The unemployment rate for the economy as a whole is a(n)
a. normative value judgment b. positive value judgment c. microeconomic statistic d. macroeconomic statistic e. example of an economic model
Government spending on a transfer payment is illustrated by
a. interstate highways b. elementary and high school education c. community colleges d. land-grant universities e. agricultural subsidies