Would it take longer for a labor market to move to a new equilibrium for house painters or architects? Why?
What will be an ideal response?
It would take longer for the market for architects to move to a new equilibrium, other things being equal. It takes more time in training to become an architect, and the knowledge one has is more specialized. Hence, it would take longer for the increase in quantity supplied to reach a new equilibrium after an increase in demand for architects than for house painters. For a decrease in demand, house painters can find similar jobs at similar pay more easily than can an architect.
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Which of the following people are liquidity providers?
A. Used car salesman B. Stock broker C. Real estate agent D. All of these are considered liquidity providers.
The amount of autonomous consumption in an economy is measured by the:
a. the intercept of the consumption function when disposable income is positive. b. the intercept of the consumption function where actual consumption is above the 45-degree line. c. the intercept of the consumption function when disposable income is zero. d. the intercept of the consumption function where actual consumption is below the 45-degree line. e. the intercept of the consumption function when disposable income is negative.
A ________ is a simplified representation of a problem that captures the essential issues.
A. hypothesis B. precept C. model D. theorem
The factor-price equalization theorem tells us that free trade between two countries should result in
A. all workers in the two countries having the same skill level. B. all workers in the two countries earning the same wage rate. C. all workers of the same skill level earning the same wage rate in the two countries. D. all input prices being equal within each country.