Refer to the given data. Suppose that the union that provides labor to firms in this market successfully negotiates an increase in the wage rate from $10 to $12. As a result of the wage increase, firms will hire:
A. fewer workers and the total paid out for wages will decline.
B. fewer workers, but the total paid out for wages will increase.
C. fewer workers, but the total paid out for wages will remain unchanged.
D. more capital, if capital and labor are used in fixed proportions in production.
A. fewer workers and the total paid out for wages will decline.
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Which of the following statements is true?
A. There was a great deal of stagflation in the 1930s. B. The inflation rate fell during the Eisenhower Administration, but rose during the Reagan years. C. Output in the United States fell by about one-third between 1929 and 1933. D. The Medicare and Medicaid programs were inaugurated during the New Deal.
Each of the following, except one, is a condition necessary for a private market solution to an externality problem. Which is the exception?
a. Legal rights must be clearly established. b. Legal rights must be easily transferred. c. The number of people involved must be very small. d. The amount of money involved must be very small. e. Side payments must be arranged without cost.
Spending a lot on advertising:
A. can act as a credible signal to consumers of high-quality products. B. does not serve as a credible signal to consumers, since any producer can do it. C. can act as a credible signal to producers to create high quality substitutes. D. can act as a credible signal to consumers of low-quality products.
Based on the information shown in Exhibit 3, how much cloth can Wendy produce in one day using all of her resources?
a. 3 yards
b. 4 yards
c. 5 yards
d. 10 yards