If producers must obtain higher prices than before to produce a given level of output, then the following has occurred:
A. A decrease in demand.
B. An increase in demand.
C. A decrease in supply.
D. An increase in supply.
Answer: C
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Why has the cartel in diary farming not been broken up?
a. Organized crime is used to enforce a dairy compact. b. The dairy industry is exempt from anti-trust laws. c. Consumers do not mind paying higher prices for milk. d. Economic studies indicate that to do so would decrease efficiency.
The labor force participation rate is defined as
A) the percentage of the working-age population that is unemployed. B) the percentage of the working-age population that is employed. C) the percentage of the labor force that is employed. D) the percentage of the labor force that is unemployed. E) the percentage of the working-age population in the labor force.
Statistical discrimination
a. arises from employer prejudice b. arises from consumer prejudice c. does not involve prejudice by employers or consumers d. is illegal in the United States e. tends to reduce the profits of profit-maximizing firms
If the MPC is .75, the multiplier is
A. .25. B. .75. C. 1. D. 4.