Suppose, as a result of a long-run adjustment in a perfectly competitive industry to a change in demand, price and output both fell. Therefore, demand must have __________ in this __________ industry
a. fallen; increasing cost
b. fallen; decreasing cost
c. increased; increasing cost
d. increased; decreasing costs
e. decreased; constant cost
A
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Unions support minimum wage laws, because
A) union workers are typically paid the minimum wage. B) an increase in the minimum wage paid to low-skilled labor increases the opportunity cost of employing high-skilled union labor and, hence, increases the demand for union labor. C) an increase in the minimum wage paid to low-skilled labor increases the opportunity cost of employing low-skilled labor and, hence, increases the demand for union labor. D) an increase in the minimum wage paid to low-skilled labor causes the supply curve of low-skilled labor to shift leftward and, hence, increases the demand for union labor.
The main determinant of the discount rate on a privately issued bank note was:
a. how long the issuing bank had been in operation. b. who was on the issuing bank's board of directors. c. the general reputation of the issuing bank. d. the distance of the issuing bank from the location where the note was being used.
Which of the following is most likely to help promote the efficient use of resources and rapid economic growth?
a. high tariffs and imposition of other trade restrictions b. high marginal tax rates c. an open and competitive capital market d. high rates of inflation
What measures would not lower infant mortality rates in the United States?
a. Prenatal care programs in low-income neighborhoods b. Emphasis on improving infant health during the post-neonatal period c. Reduced drug use among expectant mothers d. Reducing the rate of stillbirths e. Delaying childbearing beyond the teen years