An increase in taxes on labor earnings, everything else equal
a. shifts the labor supply curve to the left and increases the real wage.
b. shifts the labor supply curve to the right and increases the real wage.
c. shifts the labor supply curve to the right and reduces the real wage.
d. shifts the labor supply curve to the left and reduces the real wage.
A
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Which of the following statements is true?
A) The government plays absolutely no role in economies characterized by communism. B) Competition among firms is likely to be higher in communist economies than in market economies. C) The government plays absolutely no role in economies characterized by market economies. D) Competition among firms is likely to be higher in market economies than in communist economies.
If the price level is falling, the economy is experiencing
a. creeping inflation b. stagflation c. disinflation d. inflation e. deflation
Noncash gift giving involves value loss when the marginal utility of the gift to the receiver is less than the product price.
a. true b. false
Refer to the graph shown. If the monopoly firm maximizes profit, there will be a welfare loss equal to:
A. $5.00. B. $2.50. C. $10.00. D. $7.50.