When reselling a product is easy, ______.
a. firms can price discriminate
b. price differentials expand
c. price differentials shrink
d. market prices increase
c. price differentials shrink
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Use the following table to answer the question below. Dave's Production Possibilities ScheduleSimon's Production Possibilities SchedulePounds of Green BeansPounds of CornPounds of Green BeansPounds of Corn0160080201204060408080406040120208001600Who has the comparative advantage in the production of corn?
A. Simon B. Dave C. Both D. Neither
Refer to Figure 6.6, which shows a market for taxi medallions. If the number of taxi licenses is reduced from Q2 to Q1, the decrease in total surplus of the market is represented by:
A. area FGI. B. area GHI. C. area FHI. D. area BDFH - area FHI.
In the new classical model, stabilization policies
a. cannot affect output and employment in either the short run or the long run. b. affect output and employment only in the short run. c. have no effect on output and employment, even in the short run. d. affect output and employment only in the long run.
As a result of emancipation,
(a) black labor force participation increased by 1/3. (b) black labor force participation declined by 1/3. (c) amazingly, black labor force participation remained essentially unchanged. (d) average wages of black workers rose well above those of their immigrant counterparts.