If real wages fall as output rises, then in the classical model it must be the case that
a. labor demand rose.
b. labor demand fell.
c. labor supply rose.
d. labor supply fell.
e. none of the above.
C
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In a market economy, which of the following is most important if one is going to achieve high earnings?
a. willingness to do hard physical work. b. providing goods and/or services that others value highly. c. performing an important social function, like teaching. d. having a membership in a labor union.
When markets open up to international trade, we know that total surplus will rise
a. True b. False Indicate whether the statement is true or false
Prime Minister Emma Bigshot urges passage of a bill to reduce unemployment benefits from very generous levels in her country. She also urges her country's central bank to raise the rate at which the money supply is increasing. In the long run which, if either, of these policies will reduce the unemployment rate?
a. both reducing the generosity of unemployment benefits and raising the rate at which the money supply is increasing b. reducing the generosity of unemployment benefits but not raising the rate at which the money supply is increasing c. raising the rate at which the money supply is increasing, but not reducing the generosity of unemployment benefits d. neither reducing the generosity of unemployment benefits nor raising the rate at which the money supply is increasing
If a firm has a monopoly over the sale of camera drones and seeks to maximize profits, it:
A. adjusts the price of the product until demand becomes perfectly inelastic. B. will set the price of the product so that its marginal revenue equals its marginal cost. C. will set the price of the product equal to the marginal cost of production. D. will set the price of the product equal to the average total cost of production.