In the labor market shown above, if a minimum wage level is set at Wm, it will cause:
A. Employment to increase from A to B
B. Employment to decrease from C to B
C. Employment to decrease from B to A
D. AC workers to be hired
C. Employment to decrease from B to A
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The Compagnie Naturelle sells mounted butterflies, using butterfly bait it buys from another firm for $20,000. It pays its workers $35,000, pays $1000 in taxes, and has profits of $3000. What is its value added?
A) $3000 B) $19,000 C) $39,000 D) $59,000
As monthly rain levels rise, golf course revenue falls because casual golfers prefer to stay dry. This is an example of:
A. scarcity. B. incentives. C. normative analysis. D. correlation and causation.
With perfect price discrimination the monopoly
a. eliminates all price discrimination by charging each customer the same price. b. charges each customer an amount equal to the monopolist's marginal cost of production. c. eliminates deadweight loss. d. eliminates profits and increases consumer surplus.
At the equilibrium price for gasoline:
a. everyone with the desire and the income to buy gasoline at that price can do so. b. surpluses are inevitable c. quantity demanded exceeds the quantity supplied. d. none of the above