The minimum wage, if it is binding, lowers the incomes of
a. no workers.
b. only those workers who become unemployed.
c. only those workers who have jobs.
d. all workers.
b
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A firm's producer surplus equals its economic profit when
A) average variable costs are minimized. B) average fixed costs are minimized. C) marginal costs equal marginal revenue. D) fixed costs are zero. E) total revenues equal total variable costs.
Suppose an increase in price decreases quantity demanded from 210 to 190. Using the mid-point formula, the percentage change in quantity demanded is:
A. 2 = 200 percent. B. 0.2 = 20 percent. C. 0.2 = 20 percent. D. 0.1 = 10 percent
The main shortcoming of the market, in the view of many,
a. lies in the arena of justice and injustice. b. lies in the area of consumer goods production. c. is its inability to stimulate the creation of new products. d. is its drag on growth in productivity.
The long run can be distinguished from the short run because in the long run
a) an equilibrium is reached between aggregate supply and aggregate demand b) resources are no longer scarce c) firms produce at capacity d) the inflation rate is zero e) technological advances come to an end