Producer surplus
What will be an ideal response?
The difference between the minimum price suppliers are willing and able to sell something for and the price they actually sell it for
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Japanese employers tend to hire employees right out of college and train them for a lifetime job with the company. Over time they found that women often, but not always, married after a few years and left the company so they were not good training investments. Based on this experience, and despite the exceptions, firms stopped hiring any women for jobs that require substantial training. This practice is called
A. economic discrimination. B. statistical discrimination. C. compensating differentials. D. the substitution effect.
If the price of a DVD decreases by 50 percent, the quantity demanded increases by 75 percent. The price elasticity of demand is:
A. -0.67 and is elastic. B. -0.67 and is inelastic. C. -1.5 and is inelastic. D. -1.5 and is elastic.
Assume a drought in the Great Plains reduces the supply of wheat. Since wheat is a basic ingredient in the production of bread and potatoes are a consumer substitute for bread, we would expect the price of wheat to:
A. fall, the supply of bread to increase, and the demand for potatoes to increase. B. rise, the supply of bread to decrease, and the demand for potatoes to decrease. C. rise, the supply of bread to increase, and the demand for potatoes to increase. D. rise, the supply of bread to decrease, and the demand for potatoes to increase.
Refer to the figure. A weaker economy, characterized by higher unemployment rates, will:
A. reduce MB and increase MC, lowering the optimal quantity of immigrants.
B. increase MB and reduce MC, raising the optimal quantity of immigrants.
C. increase both MB and MC, and the effect on the optimal quantity is uncertain.
D. reduce both MB and MC, and the effect on the optimal quantity is uncertain.