Exam 4: Market Equilibrium and Welfare Economics

If equilibrium price rises but equilibrium quantity remains unchanged, the cause is:

The first condition of which economist states that welfare is said to increase when national income increases

Social Welfare function is a function of

Increasing the minimum wage for workers will:

Every factor of production gets reward equal to:

Union leaders are in a worse position to bargain for higher wages if demand for labour is

We should employ units of a factor to a point where:

In market equilibrium, supply is vertical line. The downward sloping demand curve shifts to the rights. Then,

The labor market equilibrium determines the wage rate and

"Social welfare increases when transfer of real income from the rich to poor increases" is a statement given by

If MRP < P of the factor, firm should hire

The concept of social optimum was introduced in Welfare Economics by

Under perfect competition, demand for a factor is its:

A decrease in demand causes the equilibrium price to:

Price of a product is determined in a free market:

If MRP > Price of the factor: firm should hire

If marginal product of labour rises because of new technology:

The price of capital is

The concept of Social Welfare function was firstly introduced by

Who proclaimed the 'doctrine of invisible hand'?