The labor demand curve slopes downward because
A) the firm maximizes profits by hiring more labor when the real wage rate rises.
B) workers supply more hours of work when the real wage rate rises.
C) the firm maximizes profits by hiring more labor when the real wage rate falls.
D) workers supply fewer hours of work when the real wage rate rises.
C
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Suppose Always There Wireless serves 100 high-demand wireless consumers, who each have a monthly demand curve for wireless minutes of QdH = 200 - 100P, and 300 low-demand consumers, who each have a monthly demand curve for wireless minutes of QdL = 100 - 100P, where P is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always There Wireless charges $0.35 per minute. How many minutes will low-demand consumers purchase?
A. 65 B. 35 C. 75 D. 165
Which of the following changes will shift the money demand curve leftward?
a. An increase in the price level b. An increase in real GDP c. A decrease in the nominal interest rate d. An increase in the nominal interest rate e. A decrease in real GDP
The cost of inflation to society includes I. the opportunity costs of resources used by people to protect themselves against inflation. II. the diversion of productive resources to forecasting inflation
A) I only B) II only C) both I and II D) neither I nor II
In modern economies,
A) restrictions on international labor mobility are common. B) labor is far more mobile internationally than capital. C) restrictions on international labor mobility are rare. D) labor is far more mobile internationally than it is intra-nationally. E) outsourcing increases international labor mobility.