A tremendous flood along the Mississippi River destroys thousands of factories, reducing the nation's capital stock by 5%. What happens to current employment and the real wage rate?
A. Both employment and the real wage rate would increase.
B. Both employment and the real wage rate would decrease.
C. Employment would increase and the real wage would decrease.
D. Employment would decrease and the real wage would increase.
Answer: B
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The above table shows the per day total cost for Kiley's Baseball Glove Company. Each glove is priced at $50 and Kiley's Baseball Glove Company is a perfectly competitive firm
Between which two amounts of output does Kiley's Baseball Glove Company make an economic profit? A) 0 and 8 B) 1 and 8 C) 2 and 7 D) 3 and 6
External costs are those costs:
A. that fall directly on an economic decision maker. B. that fall indirectly on an economic decision maker. C. that are imposed without compensation on someone other than the person who caused them. D. that are both social costs and private costs.
Which of the following categories accounted for the lowest percent of the total federal government expenditures in recent years?
a. Income security. b. National defense. c. Education and health. d. Interest on the national debt.
If the price elasticity of demand for apples is 0.8, then a 2.4% increase in the price of apples will decrease the quantity demanded of apples by
a. 1.92%, and apples sellers' total revenue will increase as a result. b. 1.92%, and apples sellers' total revenue will decrease as a result. c. 3%, and apples sellers' total revenue will increase as a result. d. 3%, and apples sellers' total revenue will decrease as a result.