If producers who hire labor in a competitive labor market decide to purchase the new automated machine that completes the work of 30 employees, in the short run we would expect the:
A. labor-demand curve to shift to the right and wages would increase.
B. labor-supply curve to shift to the left and wages would rise.
C. labor-demand curve to shift to the left and wages would decrease.
D. labor-supply curve to shift to the right and wages would rise.
Answer: C
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A buyer’s response to a change in income is an example of a “change in demand.”
Answer the following statement true (T) or false (F)
This graph shows three different budget constraints: A, B, and C. If Ted's budget constraint is shown by line A in the graph shown, and Ted's income for these two items is $36, what are the prices of the two goods?
This graph shows three different budget constraints: A, B, and C.
A. Soda costs $3 per case, and milk costs $4 a gallon.
B. Soda costs $4 per case, and milk costs $3 a gallon.
C. Soda costs $12 per case and milk costs $9 a gallon.
D. Soda costs $6 per case and milk costs $3 a gallon.
The exchange of one good for another, without the use of money, is known as:
a. acquisitive exchange. b. liquidity. c. volatility. d. barter. e. currency.
Related to the Economics in Practice on page 302: A pair of shoes at a local department store has a marked retail price of $80. These shoes are on a sale table where all items are priced at 25 percent off the retail price. The store is also having a promotion of an additional 25 percent off all sale-priced shoes. Based on these stackable discounts, what is the actual selling price of these shoes?
A. $25 B. $40 C. $45 D. $60