In an economy in which the skills, preferences, and motivations of workers vary widely, equality of wage rates would
a. reduce the productive incentives of high-skill workers, an effect that would be offset by the increased work effort of low-skill workers.
b. be efficient if the wages were fixed at a high enough level.
c. lead to shortages and surpluses of resources and the use of involuntary methods of achieving work participation.
d. result in a variety of product prices, but overall GDP would be unaffected.
c. lead to shortages and surpluses of resources and the use of involuntary methods of achieving work participation.
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Total variable cost
A) increases as output increases. B) does not change as output changes. C) decreases as output increases. D) initially decreases and then increases as output increases.
In a monopoly, the price is set when the firm ______.
a. chooses the most profitable spot on the demand curve b. chooses the highest output on the supply curve c. is forced into the least profitable spot on the demand curve d. is forced into the lowest output on the supply curve
Who gains if inflation turns out to be higher than expected: the lender or borrower? What happens if inflation turns out to be lower than expected?
What will be an ideal response?
If a severe natural disaster reduced the population of a city, one would expect a natural monopoly to:
A. raise prices. B. split into two firms. C. increase sales. D. merge with a competitor.