Author Question: In some remote communities, there was only one employer in the local labor market several years ago, ... (Read 63 times)

rmenurse · **on:** Jul 1, 2018

In some remote communities, there was only one employer in the local labor market several years ago, but the number of firms that hired workers in the market increased over time.

What is the expected change in the local labor market as the number of employers increased (ceteris paribus)? A) Wages and employment increase
B) Wages remain the same but employment increases
C) Wages increase but employment remains the same
D) Wages and employment decline

Question 2

In the case in Scenario 18.1, the Coase theorem specifies that

A) the result will be different if the fishermen are given the right to clean water than it will be if the factory is given the right to use the water as it sees fit, but the result will be inefficient in either case.
B) the efficient result will occur whether the fishermen are given the right to clean water or the factory is given the right to use the water as it sees fit.
C) economic efficiency requires that the fishermen be given the right to clean water.
D) economic efficiency requires that no one may contaminate the water.
E) economic efficiency requires that the fishermen be given the right to clean water and that the factory be given the right to use the water as it sees fit.