Suppose the price level increases by 5 percent and the nominal wages of workers increase by 3 percent during a particular year. This implies that the real wage has:
a. declined by 2 percent
b. declined by 8 percent.
c. also increased by 2 percent.
d. also increased by 8 percent.
e. remained constant.
a
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Which of the following is likely to lead to a left shift in the supply curve for labor to a firm?
A) The introduction of labor-saving technology B) The establishment of a new firm nearby that offers higher wages C) An increase in the opportunity cost of leisure D) The introduction of labor-complementary technology
You read that 40 firms that grow and export strawberries to the United States decide to form a cartel. The cartel aims to raise the price of strawberries and reduce output to increase profits for the strawberry growers. You predict that this cartel will probably
A. not be successful because it is difficult to export a perishable product like strawberries. B. be successful because enforcing the rules among only 40 firms is very manageable. C. not be successful because there are too many firms that are trying to organize the cartel and there are a number of good substitutes for strawberries. D. be successful because the demand for strawberries is very inelastic.
The market labor supply curve is downward-sloping.
Answer the following statement true (T) or false (F)
An appreciation of the U.S. dollar occurs when
A) the international price of the dollar falls. B) the international price of the dollar rises. C) the supply of dollars in international markets increases. D) the U.S. demand for foreign currencies increases.