A negative externality exists when the actions of one party impose costs on a second party.
Answer the following statement true (T) or false (F)
True
You might also like to view...
The manager of a baseball team wants to hire a new pitcher for $4 million per year. Under what circumstances would it make sense for the team to do so?
What will be an ideal response?
Assuming that as a result of observed past increases in the aggregate price level, workers' expectation of the current price level rises. Then,
a. less labor will be supplied at each money wage because with the higher expectation about the aggregate price level since a given money wage corresponds to a lower real wage. b. the firm has to pay a higher money wage in order to obtain a given quantity of labor. c. more labor will be supplied at each money wage because with the higher expectation about the aggregate price level since a given money wage corresponds to a higher real wage. d. Both a and b e. Both b and c
Answer the following statement(s) true (T) or false (F)
1. Good fringe benefits will cause a rightward shift of a firm’s labor supply curve. 2. Monopsony exists when demand for labor and the quantity of labor supplied are at equilibrium. 3. Monopsony is considered good for workers because it evens out the difference between union and nonunion wages. 4. Membership in labor unions is higher in the private sector than in the public sector. 5. The percentage of workers who are union members has decreased dramatically since the 1970s.
While waiting in line to buy one cheeseburger for $1.50 and a medium drink for $1.00, Sally notices that she could get a value meal that contains both the cheeseburger and medium drink and also a medium order of fries for $2.75 . She thinks to herself, "Is it worth the extra 25 cents to get the medium fries?" To an economist, Sally's decision is an example of
a. marginal decision making. b. basing decisions on total, rather than marginal, value. c. an unintended consequence. d. the fallacy of composition.