Regardless of how price elastic labor demand curves are, employers are unaffected by wage taxes if labor supply is perfectly inelastic.
Answer the following statement true (T) or false (F)
True
Rationale: Perfectly inelastic labor supply implies wage taxes are passed on entirely to workers -- leaving employers paying the same wage as before a tax is imposed.
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The price of electricity consumption increased in a country. Since electricity is used for the production of various goods and services, this will lead to a ________, assuming all else equal
A) rightward shift of the labor demand curves of firms B) upward movement along the labor demand curves of firms C) leftward shift of the labor demand curves of firms D) downward movement along the labor demand curves of firms
Which of the following is part of the secondary market for stocks?
A) New York Stock Exchange B) the over-the-counter market C) NASDAQ D) all of these
A monopolistically competitive firm that is profitable in the short run will face competition that will eventually eliminate the firm's profits in the long run. But the firm can stave off competition and continue to earn economic profits if
A) it can successfully sue its competitors for copyright infringement. B) it can move to another country where there is less competition. C) it can lobby the government to establish a price floor for its product. D) it can find new ways to differentiate its product.
Refer to the information provided in Figure 3.16 below to answer the question(s) that follow.
Figure 3.16Refer to Figure 3.16. When the economy moves from Point E to Point B, there has been
A. a decrease in supply and an increase in quantity demanded. B. a decrease in supply and an increase in demand. C. an increase in supply and an increase in quantity demanded. D. an increase in both supply and demand.