Refer to the graph shown. Without government intervention, market forces would result in:
A. 500 labor hours demanded, 900 labor hours supplied, and a wage rate of $7.25 per hour.
B. 500 labor hours demanded, 500 labor hours supplied, and a wage rate of $7.25 per hour.
C. 800 labor hours demanded, 800 labor hours supplied, and a wage rate of $6.50 per hour.
D. 1,200 labor hours demanded, 500 labor hours supplied, and a wage rate of $4.50 per hour.
Answer: C
You might also like to view...
Suppose that to move more people off the wait list for organ donations, surgeons and hospitals are developing a market for organ swapping. This is an example of a macroeconomics topic
Indicate whether the statement is true or false
"The typical age-earning cycle provides evidence of economic discrimination by age." Do you agree or disagree? Why?
What will be an ideal response?
Comparative advantage indicates that:
A. specialization and exchange will permit trading partners to maximize their joint consumption. B. a nation can gain from trade only if it is not at an absolute disadvantage in producing all goods. C. a nation can gain from trade only when its trading partners are not low-wage countries. D. countries should export products for which they are high-opportunity cost producers.
If productivity increases as wages increase and firms pay a wage above the market clearing wage, then
A. these firms will go out of business in the long run because they will not be able to compete with firms paying lower wages. B. these firms will have lower profit levels than their competitors. C. these firms will face an excess demand for labor and will be able to hire the best workers in the market. D. a potential benefit these firms may receive is a reduction in employee turnover.