In the supply and demand model, a subsidy granted to buyers is illustrated by
a. a downward shift in the demand curve, by the per unit amount of the subsidy.
b. an upward shift in the demand curve, by the per unit amount of the subsidy.
c. a downward shift in the supply curve, by the per unit amount of the subsidy.
d. an upward shift in the supply curve, by the per unit amount of the subsidy.
B
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If the working-age population is 20 million and labor force is 13 million, the labor force participation rate is
A) 65 percent. B) 35 percent. C) 153 percent. D) 60 percent. E) impossible to calculate because data on the number of employed workers is needed.
An increase in price, facing a perfectly competitive firm, means that the profit-maximizing output level will increase
a. True b. False Indicate whether the statement is true or false
Relational contracts contract for every possible contingency
Indicate whether the statement is true or false
The model used to study the earnings of resources of production is called:
a. comparative advantage theory. b. absolute advantage theory. c. specificfactors model. d. production possibility frontier.