Refer to the scenario above. Which of the following is likely to be true in this case?
A) A unique Nash equilibrium will occur.
B) A socially inefficient equilibrium will occur.
C) Multiple equilibria will occur.
D) A dominant strategy equilibrium will occur.
B
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Minimum wage laws cause unemployment because the legal minimum wage is set
A) below the market wage, causing labor demand to be greater than labor supply. B) too low. C) above the market wage, causing labor demand to be greater than labor supply. D) below the market wage, causing labor demand to be less than labor supply. E) above the market wage, causing labor demand to be less than labor supply.
In the Solow growth model, given the values of A, s, n, and d, the economy has an equilibrium growth rate of real GDP equal to
A) s. B) n. C) n + d. D) n - d. E) s - d.
If the marginal profit from increasing output by one unit is negative, then to attain an optimum, the firm should
A. increase output until marginal profit equals zero. B. reduce output until marginal profit equals zero. C. increase output until marginal profit is maximized. D. reduce output until marginal profit is maximized.
Loopholes have the effect of
a. encouraging particular patterns of behavior and favoring particular types of people. b. eroding the progressivity of the income tax. c. altering the pattern of economic incentives. d. All of the above are correct.