Command-and-control regulation, as compared to incentive-based regulation, is:
a. efficient in the short run and in the long run.
b. efficient in the short run, but not in the long run.
c. inefficient in the short run, but efficient in the long run.
d. inefficient in the short run and long run.
d
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Assume the price of widgets increases by 22 percent and the quantity supplied increases by 27 percent as a result. The elasticity of supply coefficient is: a. greater than 1, implying that widgets are normal goods. b. less than 1, implying that widgets are inferior goods. c. greater than 1, implying that supply is elastic
d. greater than 1, implying that supply is inelastic.
Suppose the goal of a union is to maximize the total income of all workers it represents. In this case it will probably aim for a wage at which the elasticity of demand for workers is
a. 0. b. infinite. c. 1. d. ranging from 2 to 5.
Since 2002, the Fed has set the primary discount rate above the IOER rate. Why is this likely to prevent the spikes in the market federal funds similar to the ones that occurred in previous years?
What will be an ideal response?
Ariana is the CEO of a corporation that hires nonunion labor. According to the theory of efficiency wages, if she decides to pay her workers more than the competitive equilibrium wage, then
a. the profits of her firm might increase. b. she will face a shortage of labor. c. the turnover of her workers may increase. d. None of the above is correct.