When the government imposes safety regulations on a particular job or labor market, what is most likely to happen?
A. Utility will increase if workers are able to correctly evaluate working conditions.
B. Wages will increase.
C. Wages will fall but utility will increase if workers misperceive on-the-job risk.
D. Firms that used to offer bad working conditions will be required to shut down.
E. Employment will increase.
Answer: C
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A tax imposed by a government on imports of a good into a country is called a
A) tariff. B) value added tax. C) sales tax. D) quota.
Explain which of the following items are not consumption goods and services:
What will be an ideal response?
Answer the following statement(s) true (T) or false (F)
1.The multiplier effect causes the ultimate increase in total purchases to be greater than the initial increase. 2.The marginal propensity to consume is the fraction of additional disposable income that a household consumes rather than saves. 3.The 2008–2009 recession was the mildest recession since the Great Depression. 4.Since the 1930s, economic stabilization policies have focused primarily on the supply side of the economy. 5.Economist Arthur Laffer invented a graphic demonstrating the effect of tax rates on government revenue.
If the coefficient of income elasticity of demand is positive, the product is an inferior good.
a. true b. false