The open-economy multiplier is equal to the reciprocal of the marginal propensity to save

The equilibrium wage and quantity of labor in the market for skilled workers is determined by

A) the demand and supply of labor. B) the strength of labor unions. C) the market value created by the output of these skilled workers. D) the monopsony power of firms.

Athos, Porthos,and Aramis each like to take fencing lessons. The price of a fencing lesson is $11 . Athos values a lesson at $16, Porthos at $14, and Aramis at $12 . Suppose that if the government taxes fencing lessons at $2 each, the price will rise to $13 . A consequence of the tax is that consumer surplus shrinks by

a. $4 and tax revenues increase by $6, so there is a deadweight loss of $2. b. $6 and tax revenues increase by $6, so there is no deadweight loss. c. $5 and tax revenues increase by $6, so there is no deadweight loss. d. $5 and tax revenues increase by $4, so there is a deadweight loss of $1.