Refer to the given data, symbols, and assumptions. Migration of workers will:
Symbols: Q = number of workers demanded; W = wage rate; and VTP = value of the
cumulative total product (output) of the particular number of workers.
Assumptions: (1) The current wage in Zinnia is $20 and the current wage in Marigold is $12; (2) full employment exists in both countries.
A. increase the combined value of total product but reduce the wage in Zinnia.
B. increase the combined value of total product but reduce the wage in Marigold.
C. reduce the combined value of total product but increase the wage in Marigold.
D. reduce the combined value of total product but increase the wage in Zinnia.
A. increase the combined value of total product but reduce the wage in Zinnia.
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If banks hold excess reserves whereas before they did not, the money multiplier:
A. will become smaller. B. might increase or might decrease. C. will be unaffected. D. will become larger.
In order to be a successful price discriminator, a provider must have a degree of market power (depicted by a downward-sloping demand curve) and meet what other condition(s)?
a. Markets must be segmentable, identifying differences in ability-to-pay. b. Demand for services must be relatively price elastic. c. Profitable service expansion opportunities must be limited. d. Customers cannot know that different prices are being charged. e. The provider must have excess capacity to accommodate the extra business.