Which of the following represents an uninsurable risk to a business firm?
A. The possibility that its warehouse will burn down.
B. The possibility that several of its workers will be injured at work.
C. The possibility that an adverse change in consumer tastes will decrease the demand for
the firm's product.
D. The possibility that a tornado will damage the plant and stop production for a month.
Answer: C
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Without any change in the supply of labor, how will shifts in the demand for labor affect equilibrium wage and employment?
What will be an ideal response?
In the specific factors model, which of the following will increase the quantity of labor used in cloth production?
A) an increase in the price of cloth relative to that of food B) an increase in the price of food relative to that of cloth C) a decrease in the price of labor D) an equal percentage decrease in the price of food and cloth E) an equal percentage increase in the price of food and cloth
Assume the central bank decides to lower the bank's reserve requirements. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real credit market with supply of real credit shifting to the right. b. Start the analysis in the real goods market with aggregate demand shifting to the left. c. Start the analysis in the real credit market with demand for real credit shifting to the left. d. Start the analysis in the real credit market with demand for real credit shifting to the right. e. Start the analysis in the real credit market with supply of real credit shifting to the left.
A graphic organizer that is especially useful for showing changes over time is a
a. line graph. b. bar graph. c. pie graph. d. circle graph.