The market maximizes total surplus under what conditions?
What will be an ideal response?
no external costs or benefits, perfect information, and perfect competition
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The substitution effect of a decrease in the wage rate would lead most people to supply
A. less labor and demand less leisure. B. less labor and demand more leisure. C. more labor and demand less leisure. D. more labor and demand more leisure.
Prejudice leads, inevitably, to economic discrimination
a. True b. False Indicate whether the statement is true or false
In an open economy, the price of a bushel of corn is ________.
A. $1 B. $7 C. $3 D. $5
Which is most likely to be a long-run adjustment for a firm that manufactures cars on an assembly line basis?
A. An increase in the amount of steel that the firm buys B. A decrease in the number of production managers in the assembly line C. A change in production to a redesigned and retooled facility D. An increase in the number of shifts of workers from two to three