If a perfectly competitive firm's marginal revenue is $35,
a. the next unit sold will earn the firm less than $35 in revenue
b. the next unit sold will earn the firm more than $35 in revenue
c. the next unit sold will earn no more revenue
d. its average revenue is $35
e. its demand curve will shift if more units are sold
D
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By offering less generous unemployment insurance programs, the United States can expect
A) citizens to pay more in taxes than citizens pay in Europe. B) longer periods of unemployment for their workers. C) workers to be slow in gaining new skills in response to fluctuations in the labor market. D) shorter periods of unemployment for their workers.
What is moral hazard?
What will be an ideal response?
Which of the following statements about the underground economy is true?
A) Most transactions that occur in the underground economy are included in the calculation of GDP. B) Excluding underground economy production from measured GDP causes errors in GDP growth estimates in the long run. C) Income that is earned but not reported as income for tax purposes is included in the calculation of GDP. D) The underground economy in developing countries amounts to less than 10% of measured GDP.
Suppose Country X is relatively labor-abundant and relatively land-scarce. Country Y is relatively labor-scarce and relatively land-abundant. The production of corn is relatively land-intensive while the production of shoes is relatively labor-intensive. Explain the short- and long-run effects of opening to free trade between these countries on the incomes of: workers employed in the production of corn in each country; workers employed in the production of shoes in each country; land used in the production of corn in each country; and land used in the production of shoes in each country.
What will be an ideal response?