Suppose the wage rate in a certain industry falls, yet firms hire fewer workers. The best explanation of this is that labor:
A. demand fell.
B. demand increased.
C. supply fell.
D. supply increased.
Answer: A
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The rate of return on an investment in medical education:
a. will increase with an increase in the availability of student loans. b. is inversely related to the number of years in the profession. c. is much higher than the rate of return on an undergraduate business degree. d. is inversely related to the length of time spent in formal schooling. e. is inversely related to income.
A small country is considering imposing a tariff on imported wine at the rate of $5 per bottle. Economists have estimated the following based on this tariff amount: World price of wine (free trade):$20 per bottleDomestic production (free trade):500,000 bottlesDomestic production (after tariff):600,000 bottlesDomestic consumption (free trade):750,000 bottlesDomestic consumption (after tariff):650,000 bottles The imposition of the tariff on wine will cause the surplus of the domestic producers to ________ by about
A. rise; $2.75 million. B. fall; $2.5 million. C. rise; $1 million. D. rise; $500,000.
An increase in government spending will likely have which of the following effects?
A) a rightward shift in the IS curve B) a leftward shift in the IS curve C) an upward shift in the LM curve D) a downward shift in the LM curve
The optimal level of crime control is achieved where
A. the police officers' association is satisfied. B. the marginal reduction in the expected cost of crime equals the marginal cost of prevention. C. the total reduction in the expected cost of crime equals the total cost of prevention. D. the average reduction in the expected cost of crime equals the average cost of prevention.