What do you mean by the term 'equilibrium wage'?
a. It is the wage that is determined when potential employers and potential employees are free to transact as they wish.
b. It is a wage determined by the government with an intention to narrow the gap between the higher and the lower income groups.
c. It is a wage at which the workers refuse to offer labor
d. It is a minimum possible rate that an employer must pay in order to hire a labor.
e. It is a wage at which there is an excess supply of workers.
a
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Refer to Figure 17-2. Suppose the economy is at point C in the figure above. If workers adjust their expectations of inflation, which of the following will be true?
A) Workers and firms expect inflation to be 1%. B) The short-run Phillips curve will shift to the right. C) The natural rate of unemployment is 6%. D) The economy will move from C to A. E) The short-run Phillips curve will shift to the left.
Refer to Scenario 9.9 below to answer the question(s) that follow. SCENARIO 9.9: Sponsors invest $250,000 in a new greeting card business on the promise that they will earn a return of 10% per year on their investment. The business sells 52,000 greeting cards per year. The fixed costs for the business include the return to investors and $79,000 in other fixed costs. Variable costs consist of wages ($1,000 per week) plus materials, electricity, etc. ($3,000 per week). The business is open 52 weeks per year.Refer to Scenario 9.9. The annual total costs for the business sum to
A. $79,000. B. $104,000. C. $208,000. D. $312,000.
The Clean Air Act of 1992 focused on
A. greenhouse gases. B. smog. C. acid rain. D. the ozone layer.
If supply increases and demand remains unchanged, equilibrium quantity will _______ and equilibrium price will ______________.
A. rise; rise B. fall; fall C. fall; rise D. rise; fall