A firm using a two-part tariff can produce the economically efficient outcome by
A) making the fixed-fee portion of the price as low as possible.
B) setting the fixed-fee portion of the price at some proportion to the fixed cost of production.
C) setting the per-unit portion of the price equal to the average cost of production.
D) setting the per-unit portion of the price equal to the marginal cost of production.
D
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Which of the following is likely to cause a decrease in the wage rate and an increase in the employment level of a country?
A) A left shift in the demand curve for labor, without any change in the supply curve for labor B) A left shift in the supply curve for labor, without any change in the demand curve for labor C) A right shift in the supply curve for labor, without any change in the demand curve for labor D) A right shift in the demand curve for labor, without any change in the supply curve for labor
If foreign holdings of U.S. dollars increase, holding all else constant,
A) the balance on the U.S. current account will increase. B) the balance on the U.S. capital account will increase. C) the U.S. balance of trade will increase. D) the balance on the U.S. financial account will increase.
Which of the following is true in a market economy?
a. Central planners determine answers to the basic economic questions. b. Resources are used efficiently. c. The distribution of wealth is equal. d. Information for production and distribution decisions pass directly to buyers from the government.
Collin has lost his job with a telemarketing company, which has moved its operation to India. Collin is considered
A. frictionally unemployed. B. a discouraged worker. C. seasonally unemployed. D. structurally unemployed.