Other things being equal, an increase in the labor force resulting from increased immigration tends to:
a. increase wages
b. decrease wages.
c. decrease the demand for labor.
d. increase the demand for labor.
b
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Which of the following is NOT a characteristic of a perfectly competitive long-run equilibrium?
A) Firms are earning zero profits. B) Price equals marginal cost. C) Price equals long-run minimum average cost. D) Firms are producing on the downward sloping portions of their short-run average cost curves.
A tax on a product causes a deadweight loss because: a. some consumer surplus is transferred from buyers to producers
b. some producer surplus is transferred from producers to consumers. c. some consumer and producer surplus is transferred to the government. d. it distorts the incentives of producers and consumers so that the efficient level of output is not produced.
When a central bank buys or sells government bonds, it conducts:
(a) An open-market operation. (b) A reserve requirement. (c) Inter-bank lending. (d) None of the above.
What is the difference between the competitive level of employment and the union optimum level of employment in Figure 31.1?
A. Zero. B. 3 workers. C. 6 workers. D. 22 workers.