If there are powerful unions in a labor market, the use of the supply-and-demand model to analyze labor markets
A. is inappropriate.
B. will cause you to believe the wage will be lower than it is.
C. will cause you to believe that fewer people will be hired than will be.
D. is completely accurate.
Answer: A
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A market failure occurs when
a. shortages or surpluses of some good cannot be eliminated. b. a private market cannot provide a good in socially efficient quantities. c. consumers' surplus falls to zero. d. property is privately owned and people behave competitively.
Ted's Pancake Kitchen suffers a short-run loss. When should Ted decide to shut down rather than continue to produce?
A) if his Kitchen's revenue is less than its fixed costs B) if his Kitchen's revenue is less than its total costs C) if his Kitchen's revenue is less than its variable costs D) if his Kitchen's revenue is less than its explicit costs
If a country were to experience an increase in its factors of production, its production possibilities frontier would shift outward
Indicate whether the statement is true or false
Microeconomics is concerned with
A. the aggregate or total levels of income, employment, and output. B. a detailed examination of specific economic units that make up the economic system. C. how government debt affects aggregate economic activity. D. the establishing of an overall view of the operation of the aggregate economic system.