Lower wages will
a. decrease the demand for labor
b. decrease the quantity of labor demanded.
c. increase the demand for labor.
d. increase the quantity of labor demanded.
d
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Economics is a social science rather than a “hard” science like physics because
A. economists abstract from reality when creating their theories. B. economics is easier to study than physics. C. economists must explain their theories to policy makers who lack formal mathematical training. D. economists study human behavior, which is affected by an unpredictable and vast range of influences.
In larger markets, the quest for profit by firms motivates them to be innovative and produce new and more appealing products
Indicate whether the statement is true or false
Of the following activities, specify which ones would typically generate positive externalities, negative externalities, or no externalities:
a. You decide to trade in your 1997 Cadillac for a 100% electric Nissan Leaf. b. Every morning while in the shower, you sing at the top of your lungs and very much off-key as long as no one else is at home. c. You choose to not clean up after your German Shepherd when you take him for his midnight walks around the neighborhood. d. After running out of space in your house, you decide to store your collection of 46 broken lawn mowers in your front yard. e. As you do every year, this year you get a flu shot at the local Walgreens.
Assume price exceeds average variable cost over the relevant range of demand. If a monopolistically competitive firm is producing at an output where marginal revenue is $23 and marginal cost is $19, then to maximize profits the firm should
A) continue to produce the same quantity. B) decrease output. C) shut down. D) increase output.