As a result of an increase in the Medicare tax that employers must pay on their employees? wages, employers reduce the starting wage for new employees. This is an example of
A. tax shifting.
B. a regressive tax.
C. tax avoidance.
D. tax incidence.
Answer: A
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
Bertrand price competitors can recover some market power when they differentiate their products.
Answer the following statement true (T) or false (F)
Why do perfectly competitive firms maximize their profits by producing so that the price is equal to marginal cost, but monopolists maximize their profits by setting a price that is greater than marginal cost?
What will be an ideal response?
An increase in the number of workers hired by a firm could result from
A) a decrease in the marginal product of labor. B) a decrease in the marginal revenue product of labor. C) an increase in the real wage. D) a decrease in the real wage.