Which of the following is likely to cause flour mills to increase their demand for labor?
A) A decrease in the wage rate
B) An increase in the wage rate
C) An increase in the price of bread
D) A decrease in the price of flour products
C
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An increase in physical capital or a technological advance
A) raises the real wage rate. B) decreases the quantity of labor employed. C) shifts the production function downward. D) decreases demand for labor.
During the 1960s, the inflation rate and the unemployment rate were inversely related
a. True b. False Indicate whether the statement is true or false
What mechanism assures that producers use inputs efficiently?
a. governmental regulations on use of resources b. altruism c. the desire for profit d. an innate desire to be efficient e. All of the above are correct.
Suppose there are two small island countries: Avarice, which is populated by people who are completely self-interested, and Altruism, which is populated by people who have adopted social norms of generosity and cooperation. Commitment problems will be:
A. prevalent on both islands. B. largely avoided in Avarice, but prevalent in Altruism. C. largely avoided in Altruism, but prevalent in Avarice. D. largely avoided on both islands.