Suppose that the labor market for life guards is initially in equilibrium. Then a new television series debuts which glamorizes the social opportunities for life guards. What happens to the equilibrium wage and quantity of life guards?
a. Both the equilibrium wage and quantity increase.
b. Both the equilibrium wage and quantity decrease.
c. The equilibrium wage increases, and the equilibrium quantity decreases.
d. The equilibrium wage decreases, and the equilibrium quantity increases.
d
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In 2012, which of the following countries had the highest share of investment spending in GDP?
A) China B) France C) the United States D) Germany
Suppose the currency drain ratio is 25 percent and the desired reserve ratio is 20 percent. The money multiplier equals
A) 4.00. B) 5.42. C) 2.00. D) 2.78. E) 3.00.
When an innovation is created by one firm in a perfectly competitive market,
a. the market price will rise b. less output will be produced by its competitors c. the long-run equilibrium price remains the same but the economic profit of its competitors falls d. some firms leave because the price will fall e. other firms will imitate the innovator
What quantity of output and price do they try to set, when a group of oligopoly firms form a cartel? Will there be any changes in the price and quantity supplied if the cartel gets broken down?