Suppose the demand for labor shifts rightward due to economic growth, but the supply of labor remains unchanged. How does this affect the market outcome under an efficiency wage equilibrium?
A) Efficiency wage and employment are higher
B) Efficiency wage is lower, employment is higher
C) Efficiency wage is higher, employment is lower
D) Efficiency wage and employment are lower
A
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If the marginal propensity to consume (MPC) is 0.8, the multiplier is
A) 0.8. B) 5.0. C) 1.2. D) 0.2.
When a nation imports a good or service, the nation's consumer surplus ________, its producer surplus ________, and its total surplus ________
A) increases; decreases; increases B) increases; decreases; decreases C) increases; increases; increases D) decreases; decreases; decreases E) decreases; decreases; increases
What is the difference between average total cost and marginal cost and are they ever equal to each other?
What will be an ideal response?
Because of the relationship among ethanol production, sugar, and corn the authors of your text have concluded that:
a. the corn subsidy is a big problem for ethanol exports. b. the sugar quota makes sugar so cheap in the United States that ethanol producers are using it instead of corn. c. due to the sugar quota and its high price, there is a huge demand for less environmentally friendly corn as a substitute in food products and for ethanol. d. ethanol should be imported rather than exported.