A decrease in regulation will cause
A. AS to increase (move down and to the right).
B. AD to decrease (move to the left).
C. AD to increase (move to the right).
D. AS to decrease (move up and to the left).
Answer: A
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If employers were required by law to increase the wages paid to secretaries by 40 percent, which consequence could we most confidently predict?
A) More secretaries would be employed. B) Secretaries would begin to earn more than they are worth to their employers. C) The marginal value of secretaries would increase by about 40 percent. D) The total amount of wages paid to secretaries would decrease. E) The total amount of wages paid to secretaries would increase.
By definition, a government-sponsored good
A) is a good that is deemed socially desirable. B) is a good that should be available only to upper-income groups. C) is always provided at a zero price. D) does not affect society's general welfare.
Both ______ and _______ targeted the huge American consumer market as a way to build up their own manufacturing base.
Fill in the blank(s) with the appropriate word(s).
Which of the following statements is true?
A) If a tax is imposed on a product sold by a monopolist, the monopolist will maximize its profits by producing where marginal revenue equals marginal cost. B) A monopolist will always charge the highest possible price. C) If a tax is imposed on a product sold by a monopolist, the monopolist can increase its price to pass along the entire tax to consumers. D) Because a monopolist faces no competition, the demand for its product is perfectly inelastic.