In the above figure, an increase in income is best demonstrated by a
A) shift of D1 to D2 in Graph A, if good A is a normal good.
B) shift of D2 to D1 in Graph A, if good A is a normal good.
C) movement along D0 from P1 to P2 in Graph B.
D) movement along D0 from P2 to P1 in Graph B.
A
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Globalization ________ the wages of workers in the exporting industries and ________ the wages of workers in the import-competing industries.
A. raises; raises B. lowers; raises C. raises; lowers D. raises; does not change
When you paint the outside of your house, you not only enjoy a private benefit for yourself, but you also provide a(n) __________________ benefit.
Fill in the blank(s) with the appropriate word(s).
The Coase theorem suggests that efficient solutions to externalities can be determined through bargaining. Under what circumstances will private bargaining fail to produce a solution?
Unemployment occurs when someone:
A. is not working full-time. B. wants to work but cannot find a job. C. should be working but chooses not to. D. has useful skills that are not being used.