When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is lower and the quantity of labor demand is higher than at the equilibrium wage
a. True
b. False
Indicate whether the statement is true or false
False
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An increase in aggregate demand in the long run will most likely result in: a. a decrease in price and output levels
b. an increase in price and output levels. c. an increase in the price level and a decrease in output. d. a decrease in the price level and an increase in output. e. an increase in the price level but no change in output.
If we observe that William's budget constraint has moved inward, then we know for certain that
a. his income must have decreased. b. he will be indifferent between goods X and Y. c. the price of one or both of the goods must have increased. d. his utility will decrease.
Conventional economic theory suggests that in the ultimatum game, the player proposing a split of $50 will propose that she get $49 and that the other player get $1 . By the same reasoning, if the amount to be split is $1000, the player proposing the split will propose that she gets
a. $500 and that the other player gets $500. b. $998 and that the other player gets $2. c. $999 and that the other player gets $1. d. $1000 and that the other player gets nothing.
Which of the following will cause a rightward shift of the market supply curve?
A. Change in consumers' tastes B. An increase in national income C. An increase in the product price D. A decrease in input prices