Which of the following is a positive economic statement?
A) We should raise the minimum wage in order to provide a decent wage for more people.
B) Consumers bought fewer cars when the relative price of cars increased.
C) The budget deficit has been rising in recent years.
D) Federal government spending ought to be curtailed.
E) b and c
E
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Ron's Hamburger Joint is the only restaurant in town. The above figure represents Ron's cost, demand, and marginal revenue curves. Ron operates as a single-price monopoly
a) How many hamburgers does Ron produce? b) What price does Ron charge for a hamburger? c) What is Ron's total revenue? d) What is his total cost? e) What is Ron's economic profit?
If the union wants to follow the strategy of maximizing member's income, wages should be set
A) above the market clearing wage rate. B) such that all that wanted to work could work. C) at the market clearing wage rate. D) at the point at which the price elasticity of demand equals 1.