Refer to the given diagram and assumptions. If migration is costless and unimpeded, the average level of wages will:
(1) The demand for labor in Alphania and Betania are as shown by D A and D B ,
respectively; (2) Alphania's native labor force is F and that of Betania is g; (3) wage L in Alphania is equal to wage m in Betania; and (4) full employment exists in both countries.
A. decrease in Betania but remain unchanged in Alphania.
B. increase in Alphania but remain unchanged in Betania.
C. increase in Alphania and decrease in Betania.
D. increase in Betania and decrease in Alphania.
C. increase in Alphania and decrease in Betania.
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Figure 7-15
For a firm at equilibrium, at point A in Figure 7-15,
A. the price of labor is high relative to the price of machines. B. the MPP of labor is greater than the MPP of machines. C. the MPP of labor is less than at point B. D. output is higher than at point B.
It is more certain how expansionary monetary policy will affect the current account than how expansionary fiscal policy will affect it
Indicate whether the statement is true or false
What is a centrally planned economy?
What will be an ideal response?
The market demand for wheat is Q = 100 - 2p + 1pb, where pb is the price of barley. If the price of wheat is $2 and the price of barley is $4, the price elasticity of demand
A) equals (-4/100). B) equals (-25). C) equals (-1). D) cannot be calculated without more information.