The demand curve for labor will shift whenever
A) the demand for the final product changes.
B) the wage rate changes.
C) the supply curve of labor shifts.
D) the marginal factor cost changes.
A
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The figure above shows the labor market in a region. In which of the following cases would the amount of unemployment be the largest?
A) when the market is at its equilibrium, with no minimum wage B) when a minimum wage of $4 an hour is imposed C) when a minimum wage of $6 an hour is imposed D) when a minimum wage of $8 an hour is imposed E) None of the above because the market will adjust so that there is no unemployment.
Between 1980 and 2014, income inequality in the United States has increased in part due to rapid technological change. How does technological change contribute to income inequality?
A) Advancements in technology displace skilled and unskilled workers in certain fields, leading to higher unemployment rates. B) The opportunity cost of investing in technology is investments in human capital. The resulting decrease in labor's marginal productivity has led to lower wages. C) Technology complements the skills of the well-educated while rendering redundant the labor services of unskilled and low-skilled workers. This causes a decline in the wages of low and unskilled workers relative to other workers. D) Technological change favors the owners of capital and since high-income individuals tend to own capital, income inequality is further exacerbated.
Which of the following is a characteristic of an oligopolistic industry?
a. interdependence of a firm's price and output decisions b. low barriers to entry c. small output of individual firms relative to the total market d. a large number of competing firms
Imperfect competition and market power
A. are always the result of product differentiation. B. result from diseconomies of scale. C. result in higher output than in perfect competition. D. are major sources of inefficiency.