A welfare loss in a market
a. is the dollar difference between consumer surplus and producer surplus
b. is measured as the area above the market price and to the left of the market quantity
c. is the dollar value of potential benefits not achieved due to inefficiency in that market
d. is typically due to government intervention in that market
e. is typically minimized when a government sets a ceiling price
C
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In a certain textile firm, labor is the only short term variable input. The manager notices that the marginal product of labor is the same for each unit of labor, which implies that
A) the average product of labor is always greater that the marginal product of labor B) the average product of labor is always equal to the marginal product of labor C) the average product of labor is always less than the marginal product of labor D) as more labor is used, the average product of labor falls E) there is no unambiguous relationship between labor's marginal and average products.
What is the best description of Northern wages from 1860-1864?
a. A relatively large decrease in demand relative to the decrease in supply led to lower wages and fewer people working. b. An increase in the demand for labor and decrease in the supply of labor led to lower wages and fewer people working. c. Increases in both the demand and supply for labor led to more people employed who were working for about the same wages. d. A decrease in the demand for labor coupled with an increase in the supply led to many fewer people working, but those who were employed worked for higher wages.
An increase in unemployment, ceteris paribus, may
A. Lead to decreased government expenditures. B. Reduce a budget surplus. C. Reduce a budget deficit. D. Lead to increased government revenues.
Would one expect the imports and exports between two countries to be approximately equal?
What will be an ideal response?