Describe what happens to quantity of labor supplied when wages are at the equilibrium level, above equilibrium, and below equilibrium.
What will be an ideal response?
At the equilibrium level, the wage rate satisfies the demand for labor without
leaving a surplus of labor in the market. At a wage above equilibrium, a surplus of labor
will be in the market, whereas when the wage is below equilibrium, a shortage of labor
will occur, and employers will not be able to hire all the workers they would like.
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The application of statistical methods to empirical questions in economics is known as
A. positive economic analysis. B. normative economic analysis. C. the scientific method. D. econometrics.
A notable macroeconomic effect of the bursting U.S. housing bubble in 2007 was a
A. dramatic contraction of aggregate consumption spending. B. marked expansion in the construction sector of the economy. C. modest reduction in Real GDP growth of one percentage point. D. all of the options are correct.
What is the added worker effect?
A. A secondary worker enters the labor force when the wage rate is high. B. A secondary worker enters the labor force when he or she no longer must allocate time to household production. C. A secondary worker enters the labor force when his or her consumption of goods exceeds his or her nonlabor income. D. A secondary worker enters the labor force when his or her household productivity increases. E. A secondary worker enters the labor force when the main worker in the household has lost his or her job or has experienced a wage cut.
Goods that are subject to excludability provide examples of private goods.
Answer the following statement true (T) or false (F)