Imagine that the federal government increases the minimum wage over the 2014 level. How would this action affect the graph?
a. WMIN would go lower, thereby increasing the labor surplus.
b. WMIN would go lower, thereby decreasing the labor surplus.
c. WMIN would go higher, thereby increasing the labor surplus.
d. WMIN would go higher, thereby decreasing the labor surplus.
c. WMIN would go higher, thereby increasing the labor surplus.
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The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for cod, a common resource. The market equilibrium with no government intervention is ________
A) 0 tons per week B) 400 tons per week C) 300 tons per week D) None of the above answers is correct.
If a general sales tax is enacted, we can predict with certainty that individuals will work less
a. True b. False
If two families are equally situated except that one rents and the other owns their home, the existing tax system will lead to
a. vertical inequity. b. equal treatment of both. c. horizontal inequity. d. equal burden sharing.
When Goodyear increases its production when Michelin reduces its production, Goodyear is playing a
A. cooperative game. B. negative-sum game. C. non-cooperative game. D. reaction function game.