A demand curve that is perfectly horizontal is
A. perfectly elastic.
B. perfectly inelastic.
C. relatively elastic.
D. relatively inelastic.
A. perfectly elastic.
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Structural unemployment occurs when: a. automation reduces the need for welders in Detroit
b. frictional unemployment exceeds 5 percent of the labor force. c. steelworkers are laid off due to a downturn in the economy. d. a person leaves a job to seek a better position and has not yet found the job he or she wants.
When demand for goods and services is high, firms are more likely to hire more workers
a. True b. False Indicate whether the statement is true or false
You receive a paycheck from your employer, and your pay stub indicates that $400 was deducted to pay the FICA (Social Security/Medicare) tax. Which of the following statements is correct?
a. This type of tax is an example of a payback tax. b. Your employer is required by law to pay $400 to match the $400 deducted from your check. c. The $400 that you paid is the true burden of the tax that falls on you, the employee. d. All of the above are correct.
Suppose Country A, a labor-abundant country, produces only wheat and cloth. The following equations illustrate the prices and costs of wheat and cloth in the country. The numbers indicate the amounts of labor and land needed to produce a unit of wheat and cloth. 'W' is the wage rate and 'r' is the rental rate of land.Price of wheat = 1w + 2rPrice of cloth = 2w + 1rSuppose Country A engages in free trade and the price of cloth increases from $3 per unit to $4 per unit. The price of wheat remains unchanged at $3 per unit. The wage rate and the rental rate change to ________ and ________, respectively.
A. $4/7; $5/7 B. $1; $5/3 C. $5/3; $2/3 D. $3/2; $1