The income effect of higher wages leads workers to want to work more.
Answer the following statement true (T) or false (F)
False
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If a perfectly competitive industry becomes a monopoly and the costs do not change, which of the following allocation of costs and benefits applies?
A) The producer benefits, but consumers and society are harmed. B) The producer and society are harmed, but consumers benefit. C) The producer and society benefit, but consumers are harmed. D) The producer is harmed, but consumers and society benefit. E) The producer, consumers, and society all benefit.
If an economy experiences an increase in its capital stock, everything else constant, then at constant world prices, it will
A) produce more of the labor intensive good and less of the capital intensive good. B) produce more of both goods. C) produce the same amount of both goods. D) produce less of the labor intensive good and more of the capital intensive good.
In 1903 when air pollution from a Montana smelter owned by the Anaconda Smelting Company destroyed grass and killed some cattle owned by ranchers downwind from the smelter, the ranchers sued for damages and the court
a. ordered the company to pay for the damages caused by its smelter. b. held the company liable for any future damages caused by its omissions. c. recognized that the company would pollute less when it was made accountable for the damage caused by its omissions. d. all of the above.
If the price of inputs rises when a nation is in the intermediate range:
a. Real GDP remains the same and average price level falls. b. Real GDP remains the same and average price level rises. c. Real GDP remains the same and average price level remains the same. d. Real GDP falls and average price level rises. e. Real GDP falls and average price level falls.