Which of the following statements about natural monopolies is true? A) Natural monopolies are only found in the markets for natural resources (like crude oil and coal). B) For natural monopolies, marginal cost is always below average cost. C) For natural monopolies, average cost is always increasing. D) Natural monopolies cannot be regulated. ANSWER […]
An increase in the minimum wage would lift relatively few poor people out of poverty. Indicate whether the statement is true or false ANSWER T
Some of the earnings gap between ethnic groups might be explained by differences in the quality of schooling. Indicate whether the statement is true or false ANSWER T
Based on the information in Scenario 15.7. You should A) keep the wine in barrels. B) sell the wine now, to get $18 per bottle in profit. C) keep the wine unless you expect the price to fall below $18 per bottle. D) keep the wine unless you expect the price to rise above $22 […]
Glen’s friend Andre is a big strong guy. Andre will not allow anyone to harm Glen. Glen enjoys teasing people. In fact, Glen’s marginal benefit of teasing people is given by: MB(Q) = 75 – 10Q. Generally, people do not enjoy Glen teasing them. Thus, they retaliate to Glen’s teasing. Without Andre around to protect […]
Why does the NPV of a college education tend to be positive but relatively small? A) College students tend to be young and poor, so their opportunity cost of capital is high. B) College graduates typically have limited on-the-job skills, so their initial returns from the education investment tend to be small. C) There are […]
In 2005, women received just under 50% of the degrees in law and medicine. Indicate whether the statement is true or false ANSWER T
If individuals are paid the wage at which the supply of labor is equal to the demand for labor, A) no unemployment exists, and workers have no incentive to shirk. B) no unemployment exists, and workers have an incentive to shirk. C) some unemployment still exists, but workers have no incentive to shirk. D) some […]
Refer to Scenario 13.16. If Gooi can move first, and Ici wants to realize the ($150, $300 ) payoff, A) all it has to do is threaten to buy yogurt machines, no matter what Gooi does. B) it could make its threat credible by rearranging its physical plant so that the installation of gelato machines […]
For the most part, differences in wealth do reflect current labor market discrimination. Indicate whether the statement is true or false ANSWER F
