Which of the following would be an expected result of substantially higher wages in the U.S. automobile industry?
a. an increase in the real wages of workers outside the industry
b. an increase in the price of automobiles produced in the United States
c. a reduction in the demand for foreign-produced automobiles
d. an increase in the profit rate of U.S. automobile producers
B
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Name two policies that a Keynesian economist would advocate to influence the level of GDP in the short run
What will be an ideal response?
According to this Application, the policies used by the European Union to support the agricultural sectors of its member countries created excess supply
This would occur if these policies set a ________ price which was ________ the market equilibrium price. A) maximum; below B) minimum; above C) maximum; above D) minimum; below
If the external costs of production are not taken into account, then production will
A) be less than socially desirable.
B) be more than socially desirable.
C) be the same since only prices are affected by externalities.
D) cease.
Market power is the power to:
A. control prices. B. gain another firm's customers. C. reduce price below cost to deter entry. D. control output.