We could try to use a powerful computer to construct a macroeconomic model including tens of thousands of demand and supply curves, for every market in the economy. This would not be a useful undertaking because
a. it would not be worth the increased level of complication and effort needed to collect all information
b. the model would be simplistic
c. the model would inevitably leave out important information
d. the suggested prices would inevitably be wrong in each market
e. the model would not be realistic
A
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Refer to the figure above. If the government sets the minimum wage rate at $35, the unemployment in the market will be:
A) 20 units of labor. B) 25 units of labor. C) 15 units of labor. D) 10 units of labor.
Audit studies suggest that there may be stark differences in the opportunities available to minorities and women, yet regression analyses suggest that people of every color and gender earn what they can expect to earn, given their characteristics
Indicate whether the statement is true or false
Products can be differentiated
A) if the buyers are homogeneous and their number increases. B) by location and by brand name. C) only by brand name. D) none of the above
BrightLight Ltd. estimates the demand curve for its table lamps to be Q = 1,000 - 4P. That is, P = 250- .25Q. Which of the following is NOT true?
A. The elasticity of demand for BrightLight's table lamps is equal to 7.5 when their price is $125. B. The maximum total revenue BrightLight can obtain is $62,500. C. The marginal revenue curve for BrightLight's table lamps is given by MR = 250 - ½P. D. BrightLight maximizes its total revenues when selling 500 lamps.