Refer to the diagrams and assumptions. If all the workers who lose their jobs in the union sector because of a W n to W u union wage increase are reemployed in nonunion sector 2, output in that sector will:
These two graphs show two sectors of the labor market for a particular kind of
labor. Relevant product markets are competitive. The two labor demand curves are identical and initially the quantities of labor employed in the two sectors are L 1 and L 1 and the wage rate in each sector is W n
A. decrease by F + G.
B. increase by F + G.
C. increase by E + F.
D. increase by E.
B. increase by F + G.
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When generic drugs enter the market after the patent for a brand name drug expires, the price of the brand name drug often increases. This is usually due to
A) the demand curve for the brand name drug shifting in but becoming more inelastic. B) the demand curve for the brand name drug not shifting, but the marginal cost of producing the good increases. C) the demand curve for the brand name drug shifting in but becoming more elastic. D) the demand curve for the brand name drug not shifting, but loyal customers are willing to pay a higher price for the brand name drug.
Briefly and concisely define the following terms and explain their importance in the study of economics. a. excess capacity theorem b. price leadership c. kinked demand curve d. perfectly contestable market
What will be an ideal response?
For the purpose of analyzing the gains and losses from a tax on a good, we use tax revenue as a direct measure of the
a. government's benefit from the tax. b. government's loss from the tax. c. deadweight loss of the tax. d. overall net gain to society of the tax.
Which of the following statements reflects a situation in which there are external costs?
A. Suzanne pays for a professional fireworks show for her family. Her neighbors also enjoy the show. B. Suzanne dumps her household garbage around the corner of the street. C. Suzanne invites her neighbors to a party on her birthday. D. Suzanne paints her house and landscapes her yard. Her newly beautified house and yard help her neighbors to sell their house for more than the asking price.