A shadow price is:
(a) the price in the previous period.
(b) the price in the next period.
(c) the social value of a good or service.
(d) the market value of a good or service.
(e) none of the above.
C
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Suppose we are considering the milk market and we have two sets of values, as shown by the numbers in parentheses, which represent two points on a line: (59 billion quarts; $4) and (78 billion quarts; $6). This line is most likely a
A. production possibilities frontier for milk. B. supply curve for milk. C. demand curve for milk. D. ray through the origin. E. time series line.
According to Keynes, involuntary unemployment is possible because of
A) the existence of capital markets. B) long-term labor contracts and the existence of labor unions. C) government interference in the market economy. D) inflation.
Among the reasons that health care expenditures have grown so rapidly in the United States over the last two decades are all of the following EXCEPT
A) an emphasis on wellness programs and preventive medicine. B) the aging of the U.S. population. C) expensive new medical technologies. D) third-party financing.
Refer to Figure 31.2 for a monopsonist employer. From the monopsonist's standpoint, the optimal wage and employment level would be
A. $6 per hour and 40 employees. B. $9 per hour and 40 employees. C. $7 per hour and 50 employees. D. $11 per hour and 50 employees.