Recall the Application about the decrease in the price of wool in the 1990s to answer the following question(s). In the 1990s, the world price of wool decreased by about 30 percent and prices have remained relatively low since then. In 2012, an organization in New Zealand proposed that sheep shearing be added to the Commonwealth Games and the Olympics as a spectator sport in an effort to increase the awareness and the demand for wool.Recall the Application. The decrease in the price of wool would be reflected by a movement ________ on the market supply curve for wool.
A. down and to the right
B. down and to the left
C. up and to the right
D. up and to the left
Answer: B
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Reaching a positive-positive outcome through a commitment strategy:
A. will only benefit the players and will not serve public interest. B. will not benefit anyone. C. can benefit everyone. D. will always benefit everyone.
Which of the following is not a reason why wages respond slowly to changes in output?
a. Many labor contracts specify wages for up to three years. b. The process of wage setting in large corporations is slow moving. c. Frequent wage changes can reduce worker morale and reduce productivity. d. Firms benefit from having a reputation of paying stable wages. e. The labor supply and demand curves move rapidly to clear labor markets.
Refer to Table 4-3. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the market price of Marko's polo shirts is $30, producer surplus is
A) $0. B) $16. C) $52. D) $68.
Which of the following is the source of revenue for Medicare and Social Security in the United States?
A) individual income taxes B) social insurance taxes C) sales taxes D) property taxes