Economic models start with the assumption of
a. exogenous prices.
b. the laws of supply and demand.
c. equilibrium.
d. rational behavior.
d. rational behavior.
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In a price-taker market, economic losses indicate that
a. some firms are using unfair tactics to harm others. b. some firms have miscalculated, producing goods that are less valuable than the resources used to make them. c. the situation is normal and firms need to make no adjustments. d. the firms in the industry are not minimizing their cost; they should expand output in order to fully realize the economies of scale in the industry.
Which of the following is an example of discrimination in the labor market?
a. Women earn less than men because women are more likely to be employed in occupations that pay less, such as elementary school teachers rather than electrical engineers. b. Women earn less than men because women have, on average, fewer years of experience in the labor force because women, on average, periodically leave the labor force to raise children. c. A pharmaceutical sales company pays women less than men because the company's customers, physicians and pharmacists, say that they prefer to deal with men rather than women. d. All of the above are examples of discrimination.
Tariffs and quotas on an imported product:
A. Benefit both domestic producers and consumers of the product B. Benefit both foreign producers and consumers of the product C. Benefit foreign producers and hurt foreign consumers of the product D. Benefit domestic producers and hurt domestic consumers of the product
Say's law assures us that in the classical model, total spending is always enough to purchase the economy's total output
a. True b. False