Budget cuts which lead to more lax protection of our borders will affect the labor market in California. It will cause a(n) ________ in labor supply, resulting in ________.
A. increase; higher wages
B. decrease; higher wages
C. decrease; lower wages
D. increase; lower wages
Answer: D
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The sequence of events following an increase in the federal deficit would be higher interest rates, a(n)
A. depreciating dollar, and a larger current account deficit. B. depreciating dollar, and a smaller current account deficit. C. appreciating dollar, and a larger current account deficit. D. appreciating dollar, and a smaller current account deficit.
When cyclical unemployment is zero,
A) frictional unemployment is zero. B) cyclical and frictional unemployment are zero. C) structural unemployment is zero. D) the unemployment rate equals the natural unemployment rate. E) the natural unemployment rate is zero.
Differentiate between the income effect and the substitution effect of a fall in the price of a good
What will be an ideal response?
Suppose that the development of a new, improved seed allows all corn farmers in the United States to increase their yields per acre. Since the demand for corn is relatively inelastic, the price of corn in a perfectly competitive market is likely to
a. not change, but farm revenues will fall. b. not change, but farm revenues will rise. c. increase, and farm revenues will fall. d. decrease, and farm revenues will fall.