In the long-run the firm gets to choose which short-run curve it wants to use.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 2If employers have imperfect information about job applicants, it may be rational for them to use:
a. employer prejudice.
b. worker prejudice.
c. consumer prejudice.
d. statistical discrimination.
e. occupational segregation.
QUESTION 3The social security tax, like any other tax, is shared by employers and employees based on the elasticities of demand and supply. If the wage elasticity of demand for labor is zero and the wage elasticity of supply for labor is positive:
a. most of the tax will be paid by the employer.
b. most of the tax will be paid by the employee.
c. all of the tax will be paid by the employer.
d. all of the tax will be paid by the employee.
e. the tax is split evenly between the employer and employee.
QUESTION 4The long-run average total cost curve is less u-shaped than the short-run average total cost curve.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 5When people prefer to obtain medical, or legal services from white males, although they charge high prices for their services, it is termed as:
a. producer prejudice.
b. employer prejudice.
c. worker prejudice.
d. occupational segregation.
e. consumer prejudice.
QUESTION 6Ceteris paribus, if a 20 percent increase in the price of shoes leads to a 10 percent increase in the quantity supplied of shoes, then the price elasticity of supply is equal to _____.
a. 2
b. 20
c. 10
d. 0.5
e. 0.2
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