Unions support minimum wage laws, because
A) union workers are typically paid the minimum wage.
B) an increase in the minimum wage paid to low-skilled labor increases the opportunity cost of employing high-skilled union labor and, hence, increases the demand for union labor.
C) an increase in the minimum wage paid to low-skilled labor increases the opportunity cost of employing low-skilled labor and, hence, increases the demand for union labor.
D) an increase in the minimum wage paid to low-skilled labor causes the supply curve of low-skilled labor to shift leftward and, hence, increases the demand for union labor.
Ques. 2When Patty uses money to buy her lunch, she is showing the use of money as a store of value.
Indicate whether the statement is true or false
Ques. 3Which area in the above figure shows the consumer surplus at the price and quantity that would be attained if the industry were perfectly competitive?
A) A + B + C + D
B) A + B + C + D + E
C) F + G + H
D) A + B + C + D + E + F + G + H
Ques. 4Which of the following best defines economies of scope?
A) As output expands the cost of producing a good decreases.
B) As output expands the cost of producing a unit of a good decreases.
C) Because firms use specialized resources to produce a range of goods, as the number of products produced increases, the cost of producing a unit decreases.
D) Costs increase as firms seek to find more consumers.
Ques. 5The above table shows the marginal benefits and costs from production of fertilizer. There are no external benefits. If the market is perfectly competitive and unregulated, at the equilibrium level of output, the marginal external cost per ton is
A) zero.
B) 30.
C) 80.
D) 110.
Ques. 6Which of the following statements about the Sherman Act is CORRECT?
A) The Sherman Act was the second federal antitrust law.
B) The Sherman act legalized monopolization if the company behaved reasonably once it became a monopoly.
C) The Sherman Act outlawed natural monopolies.
D) The Sherman Act made restriction of interstate trade illegal.
Ques. 7Which of the following is NOT an example of the opportunity cost of investing in human capital?
A) lost wages while in school
B) lost wages while in on-the-job training
C) tuition payments
D) apartment rent while working and going to school part-time
Ques. 8Why is society's marginal social benefit curve for a public good found by vertically summing individual marginal benefit curves and not by horizontal summation as is the case for private goods?
What will be an ideal response?
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