What happens when a market is in disequilibrium and prices are flexible?
A. The price will change.
B. The price stays the same.
C. The government sets the price.
D. The supply or demand will change.
Ans: A. The price will change.
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In the United States, the minimum wage is defined as
A) the wage that the youngest job entrant into the job market makes. B) the lowest wage that a corporation should pay a worker if the corporation wants to ensure that its employees are well trained. C) the lowest hourly wage rate a firm may legally pay its workers, as legislated by the U.S. government. D) the wage ceiling above which a firm no longer must pay its employees additional benefits.
Which is not an example of price discriminating by separating markets?
a. offering discounts for students with IDs. b. charging lower prices for airline tickets with a Saturday stay-over. c. selling 13 bagels (a "baker's dozen") for the price of 12. d. selling snowblowers at a discount in relatively warmer climates.
Wage and MFC differ for a monopsonist because:
a. the monopsonist is forced to pay a wage greater than the worker's MFC. b. the monopsonist must accept the market wage rate. c. workers are not as efficient when employed by a monopsonist. d. any wage increase applies to all workers, not just to the next hired. e. wage rate decreases force workers to work longer hours.
Governments should not be concerned about fiscal policies that sustain a pattern of high budget deficits and high trade deficits.
Select whether the statement is true or false. A. True B. False