Which of the following is most likely to have an income elasticity of demand that exceeds 1?
A) tobacco
B) alcoholic beverages
C) airline travel
D) food
E) telephone
C
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A monopsonist in the labor market has
A) a perfectly elastic labor supply. B) a decreasing average variable cost. C) an upward sloping labor supply curve. D) a downward sloping marginal revenue product curve.
The primary difference between an import tariff and an import quota is that
a. tariffs cause prices to rise, but quotas do not b. quotas cause prices to rise, but tariffs do not c. tariffs result in a net welfare loss, but quotas do not d. quotas result in a net welfare loss, but tariffs do not e. tariff revenues go to government, but quotas benefit those with the right to sell foreign goods domestically
Specialization of labor can result in output increasing at an increasing rate
Indicate whether the statement is true or false
Efficiency wages
a. may increase productivity. b. will increase unemployment. c. may improve worker health. d. All of the above are correct.