In the efficiency wage model with the efficiency wage above the market-clearing wage, the level of employment depends on
A) the intersection of labor supply and labor demand.
B) the marginal productivity of capital and the marginal productivity of labor.
C) labor demand alone.
D) labor supply alone.
C
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All else held constant, the law of demand suggests that as
A. the price of tablets decreases, the quantity of tablets demanded will decrease. B. income increases, the quantity of tablets demanded will increase. C. the demand for tablets increases, the price of tablets will increase. D. the price of tablets decreases, the quantity of tablets demanded will increase.
A natural monopoly is one that arises from
A) patent law. B) economies of scale. C) copyright law. D) any government-imposed barrier to entry. E) mergers.
Which of the following is used to explain why a consumer's willingness to buy Microsoft Office increases as the number of other people who use Microsoft Office increases?
A) diminishing marginal utility B) market failure C) the income effect of a price change D) network externalities
The balanced budget multiplier has a range from zero to 1
Indicate whether the statement is true or false