Consider the labor market in an industry that is initially in equilibrium. Which of the following will result when a government policy suddenly forces firms in this industry to improve their working conditions?
a. The labor supply curve will shift to the right and exert a downward pressure on the wage rate.
b. The labor supply curve will shift to the left and exert an upward pressure on the wage rate.
c. The labor demand curve will shift to the right and exert an upward pressure on the wage rate.
d. The labor demand curve will shift to the left and exert an upward pressure on the wage rate.
b
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Wages that are higher than the current market wage:
A) reduce the cost of production of various goods. B) lower the aggregate price index. C) dissuade workers from shirking. D) lower the productivity of workers.
The marginal product of the fourth gizmo worker hired is
A) 1. B) 3. C) 5. D) 10.
The game in Scenario 13.14
A) is Stackelberg if both players move at the same time; Cournot if one player moves first. B) is Cournot if both players move at the same time; Stackelberg if one player moves first. C) Stackelberg no matter what the timing of moves. D) Cournot no matter what the timing of moves. E) is neither Stackelberg nor Cournot.
The change in AD is the same size as the change in equilibrium GDP if prices are held constant.
Answer the following statement true (T) or false (F)