Millions of people from Mexico have migrated to the United States. This has reduced the supply of labor in Mexico and increased the supply of labor in the United States. Assume that the demand for labor in Mexico and the United States is unchanged
Then wages in the United States ________ and wages in Mexico ________.
A) fall; rise
B) rise; do not change
C) rise; rise
D) do not change; fall
E) fall; fall
A
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Suppose there are 11 buyers and 11 sellers, each willing to buy or sell one unit of a good, with values {$14, $13, $12, $11, $10, $9, $8, $7, $6, $5, $4,}. Assume no transaction costs and a competitive market. At the optimal bid-ask spread, how many transactions would the market maker undertake in this market
a. two transacttions b. three transactions c. four transactions d. five transactions
In order to maximize profits, a firm should decrease output whenever total cost exceeds total revenue
a. True b. False
As the baby boomers begin moving into the retirement phase of life during the years following 2010, spending on Social Security and Medicare will
A) rise and this will make it easier for the federal government to balance its budget. B) fall and this will make it easier for the federal government to balance its budget. C) fall and this will make it more difficult for the federal government to balance its budget. D) rise and this will make it more difficult for the federal government to balance its budget.
According to the Keynesian savings schedule, when aggregate income increases by a given amount, savings will
A) remain the same B) decrease by the amount of change in income C) increase by the amount of the change in income D) increase by less than the amount of the change in income E) increase by more than the amount of the change in income