The consumer surplus for a good will increase if the:
a. demand for the good is perfectly elastic.
b. market price of the good decreases
c. demand for the good is perfectly inelastic.
d. market price of the good increases.
b
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Suppose the government launches a successful advertising campaign that convinces workers with high school degrees to quit their jobs and become full time college students. This would cause
A) the unemployment rate to decrease. B) the number of discouraged workers to increase. C) no change in the unemployment rate. D) the labor force participation rate to decrease.
A sunk cost is a cost that has already been paid and cannot be recovered
Indicate whether the statement is true or false
Which of the following will most likely qualify for unemployment compensation benefits?
a. A new college graduate who cannot find work despite a desperate job search b. An unemployed coal miner who has been receiving benefits for the past six months c. A former retail clerk who quit her job because the boss was too demanding d. A spot welder who has just gotten his first "pink slip" in the mail after ten years of continuous employment e. An accountant who was fired from his last position for drinking alcohol on the job
Suppose that a community seeks to preserve air quality, and zones a "green belt" around the city which prevents property development within the belt. What is the most likely result of this law?
a. Interest rates will increase. b. Labor income will increase. c. Economic rent will increase. d. Profits will increase.