Which of the following increases in labor demand is due to a change in the price of a related resource?
A. A decrease in the price of wood decreases the cost of furniture, thus increasing the demand for furniture workers.
B. Snowboarding increases in popularity, thus increasing the demand for the workers who make snowboards.
C. A technological change increases output per worker in the computer industry, thus increasing the demand for computer workers.
D. Software sales rise, thus increasing the demand for software developers.
Answer: A
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Why do firms in monopolistic competition operate with excess capacity?
What will be an ideal response?
Farm productivity per acre grew most rapidly after
a. the Revolutionary War b. the Civil War c. World War I d. the 1929 stock market crash e. World War II
Impersonal market forces synchronize the personal and independent decisions of many individual buyers and sellers to achieve equilibrium price and quantity
Indicate whether the statement is true or false
Which of the following is the most likely reason the age-earnings profile is steeper for immigrants than it is for natives in the United States for ages 20 to 45?
A. Immigrants have less leverage in negotiating wage increases. B. Immigrants under the age of 45 must earn more money in order to pay for the legal expenses associated with becoming a citizen. C. The minimum wage does not apply to immigrants until they have resided in the United States for three years. D. Immigrants under the age of 45 tend to remit a large portion of their earnings to their relatives who did not immigrate. E. Immigrant wages increase rapidly when they first come to the United States and begin developing stronger English skills.