Just over 10% of workers age 25 years or older earned below $7 per hour in 2005. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
Refer to Figure 10.2. In moving from the competitive level of output and price to the monopoly level of output and price, the deadweight loss is the area: A) QmEHQc. B) GEH. C) GFH. D) FEH. E) none of the above ANSWER B
Date: September 9th, 2020
In the game in Scenario 13.17, Incumbent Monopoly has A) an incentive to threaten accommodation, which would be credible. B) an incentive to threaten war, which would be credible. C) an incentive to threaten accommodation, which wouldn’t be credible. D) an incentive to threaten war, which wouldn’t be credible. E) no incentive to make a […]
Date: September 9th, 2020
Minority workers are hired less often, for fewer hours, for less desirable jobs, and at lower wages. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
The wage rate needed to generate enough earnings to reach the 4-person poverty line is often referred to as the “working wage”. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
Refer to Figure 10.2. At output Qm, and assuming that the monopoly has set her price to maximize profit, the consumer surplus is: A) CDE. B) BDEF. C) ADEG. D) 0DEQm. E) none of the above ANSWER A
Date: September 9th, 2020
The “no shirking constraint” (NSC) curve never crosses the supply of labor curve, so A) the market never reaches equilibrium. B) there is always full employment in equilibrium. C) there is always some unemployment in equilibrium. D) the efficiency wage is always lower than the market-clearing wage. E) the gap between the NSC curve and […]
Date: September 9th, 2020
Following Example 8.8 in the book, the long-run supply of rental housing in most U.S. communities is more inelastic than the long-run supply of owner-occupied housing. Why? A) Local rental housing regulations B) Limited demand for rental housing C) Limitations on the urban land available for rental housing D) A and C above are correct […]
Date: September 9th, 2020
La Tortilla is the only producer of tortillas in Santa Teresa. The firm produces 10,000 tortillas each day and has the capacity to increase production to 100,000 tortillas each day. La Tortilla has made a large profit for years, but no other firm has chosen to compete in the Santa Teresa tortilla market. La Tortilla […]
Date: September 9th, 2020
If the regulatory agency sets a price where AR = AC for a natural monopoly, output will be A) equal to the competitive level. B) equal to the monopoly profit maximizing level. C) greater than the monopoly profit maximizing level and less than the competitive level. D) greater than the competitive level. ANSWER C […]
Date: September 9th, 2020
