Which of the following would likely be studied by a macroeconomist rather than a microeconomist?
a. the effect of an increase in the alcohol tax on the market for beer
b. the effect of foreign competition on the domestic auto industry
c. the effect of a price war in the airline industry
d. the effect of an increase in the minimum wage on an economy's overall rate of unemployment
d
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One important consequence of migration is:
A. increased output in receiving countries. B. remittances received by sending countries. C. population growth in both countries. D. demographic shifting in both countries.
The government is undertaking a policy to deal with a monopoly. As a result, the monopoly's ATC curve is shifting upward. Most likely, which of the following policies is being used?
a. antitrust action b. a regulatory commission sets a fair price c. a regulatory commission sets a price equal to marginal cost d. laissez-faire e. encouraging concentration
A theory is a deliberate simplification or abstraction of factual relationships
a. True b. False Indicate whether the statement is true or false
Even when allowed to collude, firms in an oligopoly may choose to cheat on their agreements with the rest of the cartel. Why?