Which of the following increases in labor demand is due to a change in the price of a related resource?
A. Software sales rise, thus increasing the demand for software developers
B. Snowboarding increases in popularity, thus increasing the demand for the workers who make snowboards
C. A decrease in the price of wood decreases the cost of furniture, thus increasing the demand for furniture workers
D. A technological change increases output per worker in the computer industry, thus increasing the demand for computer workers
C. A decrease in the price of wood decreases the cost of furniture, thus increasing the demand for furniture workers
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The perfectly discriminating monopolist will produce the
(a) quantity at which average cost exceeds marginal revenue. (b) quantity at which marginal cost equals average cost. (c) quantity at which marginal revenue equals marginal cost. (d) quantity and price which is not necessarily profit-maximizing but in the best interest of society at large, even if it means loss.
Determine the retail disposal charge that will produce an efficient allocation of antifreeze.
Suppose you are a public official responsible for setting a retail disposal charge on antifreeze. Estimated marginal benefit and cost functions for antifreeze are as follows: MPB = 10.0 – 0.5Q MPC = MSC = 1.0 + 0.4Q MSB = 10.0 –1.1Q, whereMPB, MSB, and MPC are measured in dollars per gallon, and Q is in millions of gallons.
In terms of the Phillips curve, the experience of the 1970s indicates that macro-policy
a. can permanently reduce unemployment if we are willing to tolerate higher inflation. b. can reduce unemployment in the long run if we are willing to tolerate higher inflation. c. may be able to reduce unemployment but cannot retard inflation. d. may be able to reduce unemployment in the short run, but there is little evidence that expansionary policies can reduce unemployment permanently.
Which of the following ideas is associated with mainstream economics?
A. Monetary policy rules are desirable. B. Capitalist economies tend to be stable. C. Crowding-out of investment makes fiscal policy ineffective. D. Fiscal policy is a useful stabilization tool.