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
Based on the information in Scenario 15.7, if you expect the price to be $21 next year, you should A) keep the wine in barrels until next year no matter what the interest rate. B) keep the wine if interest rates are above 5%. C) keep the wine if interest rates are below 5%. D) […]
Date: September 9th, 2020
Most people who earn the minimum wage are poor. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
If the quality and quantity of schooling for minorities increases, educational attainment will continue to be rewarded at the current rate. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
Some popular reality television programs follow people who buy the contents of abandoned storage lockers at public auctions. In most cases, several storeage lockers are sold in sequence during a particular auction. Occassionally, one of the buyers will purposefully bid much more than the expected value of a particular storage locker in order to intimidate […]
Date: September 9th, 2020
The mean wage for workers aged 16 to 19 was over $7 per hour in 2005. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
The efficiency wage is A) lower than the market-clearing wage, to penalize shirking. B) higher than the market-clearing wage, to penalize shirking. C) lower than the market-clearing wage, to allow managers the resources to monitor shirking. D) higher than the market-clearing wage, to reward workers for informing on others who shirk. E) lower than the […]
Date: September 9th, 2020
If there were no racial discrimination in the labor market, blacks, Hispanics, and whites with equal education should command approximately equal incomes. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
Suppose the market demand curve is perfectly elastic in an increasing-cost industry. If an output tax of t per unit is imposed on all producers of the good, what happens to the market equilibrium outcome? A) The price paid by buyers increases and output declines B) The price paid by buyers does not change and […]
Date: September 9th, 2020
If a monopolist’s profits were taxed away and redistributed to its consumers, A) inefficiency would remain because output would be lower than under competitive conditions. B) inefficiency would remain, but not because output would be lower than under competitive conditions. C) efficiency would be obtained because output would be increased to the competitive level. D) […]
Date: September 9th, 2020
