We would expect that a rise in labor supply will have a proportionately larger effect on the market wage rate when
A) the demand for labor is unitary elastic.
B) the demand for labor is inelastic.
C) the supply for labor is elastic.
D) the demand for labor is elastic.
Answer: B
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Refer to Figure 9.9. Now suppose an import quota of 3000 trucks is imposed. The quota will decrease the revenue of foreign firms by
A) $0. B) $2,500. C) $7,500,000. D) $11,250,000. E) $13,125,000.
Firms will continue to enter a competitive industry until: a. the supply curve is vertical
b. the market price falls below average variable cost. c. any economic profits have been competed away. d. all resources are fully employed.
A taxpayer pays __________ tax rate on additional income if the income tax structure is progressive, __________ tax rate on additional income if the income tax structure is proportional, and __________ tax rate on additional income if the income tax structure is regressive
A) a higher; a lower; the same B) a higher; the same; a lower C) a lower; a higher; the same D) the same; a lower; a higher E) the same; a higher; a lower
What is the profit maximizing rule for firms? (i.e. how do they decide what output to produce?) b. Explain why this approach will maximize profits for a firm.