In Figure 45.2, at the one-employer "company town solution," the number of workers hired will be 
Figure 45.2
A. L'.
B. less than L'.
C. L*.
D. between L' and L*.
Answer: A
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Which of the following is TRUE?
A) Adam Smith proposed the theory of comparative advantage as the basis for trade in The Wealth of Nations. B) David Ricardo proposed the theory of absolute advantage as the basis for trade. C) Absolute advantage is based on comparing the opportunity costs of trading partners. D) The Ricardian model assumes labor is perfectly mobile.
All other things being equal, wages will be higher when
a. employers provide less capital for their workers to use. b. workers choose not to obtain signals like education. c. workers possess less human capital. d. the job has unpleasant or risky aspects.
Which statement is true?
A. Our money supply is fixed by law and can be raised by only a very small percentage each year. B. Our money supply is backed by gold. C. Credit cards are a form of money. D. Money makes an excellent store of value during times of inflation. E. One of the basic jobs of money is a standard of value.
Which of the following is NOT a determinant of the price elasticity of demand?
A) existence of substitutes B) expenditures on the good as a share of a consumer's budget C) the amount of time allowed for adjustment to changes in the price of the commodity D) the price level in a country