An increase in labor demand accompanied by a decline in labor supply cannot result in a decline in wages.
Answer the following statement true (T) or false (F)
True
Rationale: Both an increase in demand and a decrease in supply put upward pressure on wages.
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When comparing perfect competition to a single-price monopoly with the same costs
A) both market types use resources efficiently. B) there is a deadweight loss associated with a monopoly. C) the sum of producer and consumer surplus is maximized under a monopoly. D) the sum of producer and consumer surplus is minimized under perfect competition.
Refer to Figure 84. The marginal cost of the third microwave oven is A) $133.33. B) $150. C) $350 D) indeterminate from this information.
Assume that the United States imposes a quota on Scottish wool suits. Relative to the equilibrium price that would exist in the absence of quotas, the equilibrium price of suits in the United States will most likely _______ , and the equilibrium price of suits in Scotland will most likely _______ .
A) remain the same; decrease B) remain the same; increase C) increase; increase D) increase; decrease
Which of the following is least likely to result in inflation?
a. A drought in California that causes farm production to fall. b. The government printing money to finance deficits. c. A reduction in consumer confidence. d. Rising instability in oil-producing nations.