The equilibrium wage will definitely rise if:
a) Both the supply of labor and the demand for labor increase.
b) Demand for labor increases and the supply of labor is constant.
c) Demand for labor decreases and the supply of labor is constant.
d) Supply of labor increases and the demand for labor is constant.
Answer: b) Demand for labor increases and the supply of labor is constant.
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Refer to Table 5.1. Hector should specialize in the production of
A) bracelets. B) tiaras. C) both products. D) neither product.
The marginal cost curves slope upward because of the principle of
A) decreasing marginal benefits. B) increasing marginal cost. C) increasing marginal benefits. D) decreasing marginal cost. E) decreasing total benefit.
According to the "law of demand"
A) demand generates a supply sufficient to satisfy the demand. B) nothing will be produced unless there is a demand for it. C) people will purchase less of a good when its price rises. D) wants are indefinitely expansible and can never be fully satisfied. E) whatever people want will eventually be supplied.
Accounting costs represent
A) explicit costs paid by the firm. B) opportunity costs. C) both sunk and future costs. D) long run costs only.