Basic Economic Concepts

EXPLANATION: Employer bonuses are typically used as an incentive to boost employee performance and engagement rather than being primarily about legal issues or market supply conditions.

To increase worker productivity and motivation.

Need for legal compliance with labour standards.

Response to an oversupply of qualified candidates.

The opportunity cost remains unchanged

More resources will become available

Unemployment rates will decrease

Produce fewer capital goods

Increases in input costs resulting from scarcer raw materials or wages combined with technological limitations on improvements in efficiency.

Optimization of scale benefits is maximized beyond a certain point, and additional units produced become more costly due to diminishing returns.

Producers see an opportunity to capitalize on the growing popularity of outdoor living, thereby voluntarily raising their own production costs to maintain exclusivity of the products offered.

As the demand for garden tools grows substantially, the industry confronts resource constraints causing marginal costs to rise at higher output levels.

Monopoly

Perfect competition

Monopolistic competition

Oligopoly

It stimulates investment in healthcare research.

It increases production by lowering manufacturing costs.

It discourages consumption by increasing cost.

It enhances consumption by reducing price.

Domestic producers may benefit from reduced competition while consumers face higher prices.

Free trade agreements become more prevalent as countries retaliate with their own tariffs.

Consumer surplus increases due to enhanced access to cheaper imported goods.

Both domestic and foreign producers benefit equally from increased market efficiency.

A persistent shortage of the product occurs as quantity demanded exceeds quantity supplied.

Firms in the market will achieve normal profits due to reduced competition.

Market achieves allocative efficiency as consumer surplus is maximized.

Surplus production as suppliers produce more than what consumers are willing to buy at that price.

Total revenue will remain unchanged.

Total revenue will decrease.

The effect on total revenue cannot be determined without additional information.

Total revenue will increase.

Unemployment among unskilled workers rises as firms hire fewer workers at higher wages.

The supply of skilled labor increases due to increased incentives for education and training.

The marginal productivity of labor increases as firms invest more in technology.

Workers' overall utility decreases due to a reduction in non-wage benefits offered by employers.

Designer clothing, which consumers may forego if prices rise slightly.

Digital music downloads, where alternative streaming services provide close substitutes.

Gasoline, as consumers need it for daily commuting regardless of price changes.

Fast food meals, where small price increases lead to significant reductions in quantity demanded.