If buyers and sellers in a certain market are price takers, then individually
a. they have no influence on market price.
b. they have some influence on market price but that influence is limited.
c. buyers will be able to find prices lower than those determined in the market.
d. sellers will find it difficult to sell all they want to sell at the market price.
a
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In order to increase society's well-being, a process that produces a positive externality might be
a. taxed to discourage production b. subsidized to encourage production c. taxed to encourage production d. subsidized to discourage production e. provided without government intervention
An impartial observer who listens to both sides in a labor-management dispute and makes suggestions as to how the two sides could compromise is called
a. a mediator b. an arbitrator c. a litigator d. a scab e. a judge
If national income is $400 billion, autonomous consumption is $60 billion, and MPC is 0.8, what is the level of saving?
a. $20 billion b. $210 billion c. $380 billion d. $590 billion e. $780 billion
Suppose that the state of California imposes a minimum wage of $7 per hour. In the entry-level labor market in California fast-food restaurants, the quantity of labor demanded at $7 per hour is 800 thousand, and the quantity of labor supplied is 1.2 million. Which of the following is true?
a. There is a surplus of 1.2 million workers in the labor market. b. There is a surplus of 400 thousand workers in the labor market. c. There is a shortage of 400 thousand workers in the labor market. d. There is a shortage of 800 thousand workers in the labor market.