Other things remaining the same, which of the following is likely to happen if there is a decrease in the price of cars?
A) There will be a decrease in both the wage rate and the employment levels in the petroleum extraction industry.
B) There will be an increase in the wage rate and a decrease in the employment levels in the petroleum extraction industry.
C) There will be a decrease in the wage rate and an increase in the employment levels in the petroleum extraction industry.
D) There will be an increase in both the wage rate and the employment levels in the petroleum extraction industry.
D
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A decrease in currency in circulation combined with an equal increase in savings account deposits would: a. increase both M1 and M2
b. increase M1 but have no effect on M2. c. decrease both M1 and M2. d. decrease M1 but have no effect on M2.
Certain goods are related so that an increase in the price of one good decreases the demand for the other. These goods are: a. complements
b. substitutes. c. luxury goods. d. competing goods.
The rights of a co-owner to a share of a firm's profits are
a. protected under tort law b. protected under contract law c. not protected under any form of law d. protected under antitrust law e. less valuable than the costs of pursuing action against the company
The market produces too little of a good with ______.
a. adverse selection b. negative externalities c. positive externalities d. asymmetric information