Labor is a resource that is necessary to produce many goods. "If the price of labor falls," says the economist, "the prices of goods will soon follow." How does this work?
A) If the price of labor falls, the supply of goods rises, and the prices of those goods fall.
B) If the price of labor falls, the quantity supplied of goods rises, and the prices of those goods fall.
C) If the price of labor falls, the demand for goods falls, and the prices of those goods fall.
D) If the price of labor falls, the demand for goods rises, and the prices of those goods fall.
E) If the price of labor falls, the supply of goods falls, and the prices of those goods fall.
A
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The difference between savings and saving
A) is nonexistent. B) is that savings is measured in real terms while saving is measured in nominal terms. C) is that savings is a stock concept and saving is a flow concept. D) is that savings occurs when consumption does not and saving is used to purchase consumption goods.
Which of the following events will increase GDP?
a. losing $500 playing blackjack in your dorm b. selling an antique writing desk for $500 cash c. a burglar stealing your CD player d. the police department hiring an extra detective to track down the burglar who stole your CD player
The process of taking advantage of market inefficiencies to earn profits is called:
A. futures contracting. B. arbitrage. C. technical analysis. D. a random walk.
Which of the following would be an appropriate discretionary fiscal policy to use when the economy is in a recession?
A. increased government spending B. higher taxes C. a balanced-budget reduction in both spending and taxes D. an expansion in the money supply