Holding other factors constant, if the retirement of many in people in the post-war baby boom generation reduces the portion of the population is the labor force, then the real wages of workers will ________ and employment of workers will ________.
A. increase; increase
B. decrease; not change
C. decrease; increase
D. increase; decrease
Answer: D
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Why are the losers from free international trade not fully compensated for their losses?
A) The amount of compensation needed would bankrupt the government. B) The losers are foreigners. C) The people who claim to lose are also the same ones who benefit. D) No one actually loses from international trade. E) Identifying all losers and the size of their losses is extremely difficult.
Economic inefficiency of a monopoly is indicated by
A) P = ATCmin. B) P > MR. C) P > MC. D) MR = MC.
For a restaurant, all the following are fixed costs, except
a. Space rental b. Advertising c. Raw material cost d. All of the above-they are all variable costs
Economists believe that individuals respond in a predictable way to changes in costs and benefits. The term that best describes this belief is
a. opportunity cost b. demand c. supply d. scarcity e. rational behavior