Jane is a dietician in a city that twenty years ago voted to restrict the number of dieticians in the city to five and to regulate their prices
Although the city has tripled in size during that time (and thus demand has increased), no new dietician licenses have been issued. Over the years Jane and the other license holders have begun offering a wide variety of perks to their clients to maintain market share. It is clear that the initial restriction on licenses gave Jane a _____. a. monopoly b. transitional gain c. transitional loss
d. sense of security
b
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Refer to Table 2-13. What is Horace's opportunity cost of bathing a cat?
A) one and a half groomed dogs B) two groomed dogs C) two-thirds of a groomed dog D) half a groomed dog
A firm will not choose to produce if total variable costs exceed total revenue.
Answer the following statement true (T) or false (F)
In the classical model, an increasing demand for labor will
a. cause an expansion with higher employment and a higher real wage. b. cause a shortage of labor because the labor market always clears. c. cause a recession with lower employment and a lower real wage. d. cause a recession because wages are fixed in the short run. e. cause an expansion with lower employment and a higher real wage.
Suppose that at the start of this year you got a salary increase of 10 percent from your employer. The prices of the goods and services you typically purchase increase 10 percent during the year. At the end of the year you have experienced on balance:
A. Higher real income and higher nominal income. B. Higher real income but lower nominal income. C. No change in nominal income. D. No change in real income.