We would expect that a fall in labor supply will have a proportionately smaller effect on the market wage rate when
A) workers can easily be replaced by capital goods.
B) the product produced in the industry has very few substitutes.
C) the product is produced in a perfectly competitive industry.
D) labor represents a relatively small portion of total costs.
A
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All else being equal, if the prospect of a recession leads the Federal Reserve to ease monetary policy, the equilibrium value of the exchange rate for the U.S. dollar will:
A. fall. B. either rise or fall depending on whether the supply or demand for dollars changes more. C. remain fixed. D. rise.
If a 5 percent increase in income leads to a 15 percent increase in the quantity demanded of a service, then the income elasticity of demand for that service equals 0.33
a. True b. False
In economics, the total amount received for selling a good or service is referred to as
A) revenue. B) factor payments. C) profit. D) capital gains.
One barrier to entry into a monopoly market is:
A. a natural monopoly. B. commonplace inputs. C. bulk buying. D. price gouging.