When an industry's demand curve for labor is derived from the individual firms' demand curves, what complication must be taken into account?
a. Adjustments in the amount of capital employed.
b. The factor-price effect.
c. Changes in the price of the firms' product.
d. Monopsony power.
c. Changes in the price of the firms' product.
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The demand and supply schedules for pizza are in the table above. A price ceiling of $2 per slice results in
A) a surplus of 20 slices of pizza. B) a shortage of 20 slices of pizza. C) a shortage of 40 slices of pizza. D) a shortage of 60 slices of pizza. E) neither a shortage nor a surplus.
The above figure depicts the Edgeworth box for two individuals, Al and Bruce. If the endowment is at point a, and Bruce has no ability to bargain, the final allocation will be at point
A) a. B) b. C) c. D) d.
Long-run expansion in an increasing-cost industry increases each firm's marginal and average costs by
a. saving money on per-unit production costs b. bidding up the price of resources c. holding the price of resources constant d. forcing down the price of resources e. bidding up each firm's marginal revenue
Based on the graph showing the effects of a government budget deficit, a budget deficit would lead to ______.
a. a shift in the demand curve for loanable funds to the left
b. a shift in the supply curve for loanable funds to the right
c. a decrease in loanable funds from Q1 to Q2
d. an increase in loanable funds from Q1 to Q2