Refer to Figure 14.3. To maximize the number of workers hired, the labor union will agree to wage rate: A) W0. B) W1. C) W2. D) W3. E) none of the above ANSWER B
Date: September 9th, 2020
Used cars sell for much less than new cars because A) of imperfect competition in the automobile industry. B) buyers know much more about the quality of used cars than sellers do. C) sellers know much more about the quality of used cars than buyers do. D) physical depreciation of used cars is very high. […]
Date: September 9th, 2020
Where Es is the elasticity of supply and Ed is the own price elasticity of demand, the fraction of the tax passed on to consumers in the form of higher prices is A) Es/(Es-Ed). B) Ed/(Es-Ed). C) Es/(Ed-Es). D) Ed/(Ed-Es). E) Ed/Es. ANSWER A
Date: September 9th, 2020
The authors note that the goal of maximizing the market value of the firm may be more appropriate than maximizing short-run profits because: A) the market value of the firm is based on long-run profits. B) managers will not focus on increasing short-run profits at the expense of long-run profits. C) this would more closely […]
Date: September 9th, 2020
A government can impose an import quota or an equivalent tariff that achieves the same impact on trade. What is the key difference in the welfare outcomes of these two policy options? A) The domestic quantity supplied is larger under the tariff policy. B) The domestic price is higher under the tariff policy. C) The […]
Date: September 9th, 2020
When one party suffers negative external effects due to the actions of another party, a lawsuit may not lead to the efficient outcome if: A) property rights are not clearly assigned. B) the parties have incomplete information. C) the legal costs of the lawsuit are too high. D) All of the above ANSWER D […]
Date: September 9th, 2020
Refer to Scenario 13.1. At your negotiated price your consumer surplus is: A) $50. B) $200. C) $250. D) $300. ANSWER C
Date: September 9th, 2020
Refer to Figure 14.3. To maximize economic rent, the labor union will agree to wage rate: A) W0. B) W1. C) W2. D) W3. E) none of the above ANSWER D
Date: September 9th, 2020
The United States and Mexico recently negotiated a trade agreement that eliminated many of the restrictions on trade between the two countries. a. Using the tools of microeconomics, describe how such an agreement will benefit both the USA and Mexico. b. Will everyone benefit from such an agreement? who stands to lose from such an […]
Date: September 9th, 2020
The marginal product of an input is A) total product divided by the amount of the input used to produce this amount of output. B) the addition to total output that adds nothing to total revenue. C) the addition to total output that adds nothing to profit. D) the addition to total output due to […]
Date: September 9th, 2020
