Suppose there are four industries. Labor costs are 20 percent of total costs in A, 40 percent in B, 60 percent in C, and 80 percent in D. A ten percent increase in the price of labor will cause industry ________ to reduce quantity demanded of labor by
the largest proportion.
A) A
B) B
C) C
D) D
Answer: D
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An appreciation of the U.S. dollar has what impact on Harley-Davidson (HD), a U.S. manufacturer of motorcycles?
a. domestic sales of HD motorcycles increase and foreign sales of HD motorcycles increase b. domestic sales of HD motorcycles decrease and foreign sales of HD motorcycles increase c. domestic sales of HD motorcycles increase and foreign sales of HD motorcycles decrease d. domestic sales of HD motorcycles decrease and foreign sales of HD motorcycles decrease e. only manufacturers who produce traded goods are affected
An externality
A) may be positive or negative. B) means a rapidly rising cost borne by consumers. C) is the cost of producing a good outside the United States. D) is the indirect cost, the overhead, of producing a product.
Vaccinations convey ________ to third parties.
A. positive externalities B. public goods C. economies of scale D. negative externalities
A labor contract provides for a first-year wage of $15 per hour, and specifies that the real wage will rise by 2 percent in the second year of the contract. The CPI is 1.00 in the first year and 1.09 in the second year. What dollar wage must be paid in the second year?
A. $16.09 B. $15.30 C. $16.45 D. $16.68