The amount of unemployment caused by efficiency wages:
A. has been measured by economists to be minimal.
B. has been found to be quite large in markets that have mostly minimum-wage workers.
C. is larger in sectors that have more less-skilled workers in them.
D. has little conclusive evidence in economic research.
D. has little conclusive evidence in economic research.
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The profit motive leads firms to use inputs efficiently.
Answer the following statement true (T) or false (F)
Ivan Jewels is an established diamond jeweler. Which of the following statements proves that it is a monopoly? a. It is the only firm that owns the resources for the production of diamond jewelry
b. It is unable to come up with better technology to compete with other diamond jewelers. c. It has made way for other firms to enter the industry and earn supernormal profits. d. Ivan Jewels charges the same price as other diamond jewelers in the market.
A small country is considering imposing a tariff on imported wine at the rate of $5 per bottle. Economists have estimated the following based on this tariff amount: World price of wine (free trade):$20 per bottleDomestic production (free trade):500,000 bottlesDomestic production (after tariff):600,000 bottlesDomestic consumption (free trade):750,000 bottlesDomestic consumption (after tariff):650,000 bottles The production effect of the tariff on wine is worth about
A. $250,000. B. $2.75 million. C. $500,000. D. $2.5 million.
Which is not true of price discrimination?
A. Successful price discrimination implies that the producer can separate customers into easily identifiable groups. B. Successful price discrimination will provide the firm with more profit than if it does not discriminate. C. Successful price discrimination will generally result in a lower level of output than would be the case under a single-price monopoly. D. It exists when price differences depend critically on different buyers' evaluations of a product.