The deadweight loss from a monopoly loss measures the inefficiency created by monopoly
Indicate whether the statement is true or false
TRUE
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When a minimum wage is ________, the firms' surplus and workers' surplus shrink, a deadweight loss ________, and resources are lost in job search
A) inefficient; arises B) inefficient; disappears C) efficient; arises D) efficient; disappears E) nonexistent; arises
Why does government provide educational opportunities in the form of vouchers, private subsidies, and public provision?
What will be an ideal response?
Along an IS curve as interest rates __________, income must be __________ so that saving, which is a positive function of income, can be higher to equal the higher level of investment
A) decline; lower B) decline; higher C) increase; lower D) increase; higher
Comparable worth laws:
A. may correct institutional biases in the labor market. B. always distort market outcomes because they interfere with the price mechanism. C. are necessary even when wages are completely determined by the interaction of labor supply and labor demand. D. are necessary even when institutional biases do not exist.