The U.S. terminated its role in the slave trade in the early 1800s. What is the best assessment of what would have happened had the U.S. not ended the slave trade?
a. The price of slaves would be lower and the wages of free workers would be lower.
b. The price of slaves would be higher and the quantity of free workers would be lower.
c. The price of slaves would be lower and the wages of free workers would be higher.
d. The quantity of slaves would be higher and the quantity of free workers would be higher.
e. The quantity of slaves would be lower and the wages of free workers would be lower.
a. The price of slaves would be lower and the wages of free workers would be lower. The supply for slaves would shift out, thus lowering the price of slaves and increasing the quantity of slaves. Because slaves and free workers are substitutes, the demand curve for free workers would decrease, thus decreasing both the price and quantity of free labor.
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After firm A producing one good acquired another firm B producing another good, it lowered the prices for the bundle of goods. One can conclude that the goods were
a. substitutes b. complements c. not related d. None of the above
What happens when a command-and-control regulation has been satisfied?
a. Polluters get a pollution charge tax break. b. Polluters have access to new marketable permits. c. Polluters have no incentive to do better. d. Polluters have many incentives to do better.
A perfectly competitive firm in the long run:
A. can earn positive or negative economic profits. B. makes zero economic profits. C. makes zero accounting profits. D. can earn negative accounting profits as long as economic profits are positive.
As potential real GDP is approached the aggregate supply curve becomes __________.
Fill in the blank(s) with the appropriate word(s).