The open access equilibrium for a common property resource occurs at the point where
a. Average revenue equals marginal cost
b. Total social benefits are maximized
c. Total private benefits are maximized
d. Marginal revenue equals marginal cost
e. Marginal revenue equals total costs
Ans: a. Average revenue equals marginal cost
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Refer to Figure 20-1. Based on the graph of the labor market above, if a minimum wage is set at $5 per hour, which of the following will occur?
A) The level of unemployment will rise, but the percentage of the labor force unemployed will not change. B) The unemployment rate will fall. C) The unemployment rate will rise. D) None of the above will occur.
Which of the following statements about wage setting is true?
A) most workers in the U.S. have their wages set by formal contracts. B) formal contracts play a more important role in Japan and Western Europe than in the United States. C) the minimum wage in the U.S. is about 75% of the average wage. D) all of the above