The simple circular flow model shows that workers and owners of land and capital offer their services through:
a. product markets.
b. factor markets
c. money markets
d. government.
b
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Refer to Figure 12-5. The figure shows the cost structure of a firm in a perfectly competitive market. If the firm's fixed cost increases by $1,000 due to a new environmental regulation, what happens to its profit-maximizing output level?
A) It remains the same. B) It decreases. C) It increases. D) It could increase, decrease, or remain constant, depending on whether the firm is able to cut costs somewhere else.
When one applies the Heckscher-Ohlin model of trade to the issue of trade-related income redistributions, one must conclude that North South trade, such as U.S.-Mexico trade,
A) must help low skill workers on both sides of the border. B) is likely to hurt high-skilled workers in the U.S. C) is likely to involve higher overall national economic gains that will be greater than any harm done to low-skilled workers in the U.S. D) is likely to hurt low-skilled workers in Mexico. E) gives no advantage to the workers in either country.
Who among the following people will an economist consider underemployed?
a. Someone who prefers to spend more time on leisure and less time on wage-earning activities b. A person who is working part-time at wage-earning activities, but prefers a full-time employment c. A rock star who voluntarily chooses to work part-time d. Someone who is in prison and is willing to work from his cell e. A gardener who hates plants but still does the job because he or she has no other skills
The productivity standard for the distribution of income can be thought of as
A. benefiting only the least productive worker. B. proving that egalitarians are correct. C. rewarding only the wealthy. D. rewarding people according to their ability to produce useful goods.