Describe the factors that could cause an increase in the wage rate of workers.
What will be an ideal response?
Anything that increases the demand or reduces the supply of labor will result in an increase in the wage for those workers employed. Increases in the demand for labor could be caused by an increase in the price of the product produced, and increase in technology or anything else that increases the productivity of workers. A decrease in the supply of labor could be accomplished by unionizing.
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A Treasury expenditure financed through borrowing from the Federal Reserve will cause the money supply
A) and bank reserves to rise by an equal amount. B) and bank reserves to fall by an equal amount. C) to rise but bank reserves to rise by a greater amount. D) to rise by a greater amount than the rise in bank reserves.
Unlike an owner, a manager may be more concerned with _____ than with _____. Which pair of words best completes this sentence?
a. profits, personal benefits b. personal benefits, profits c. profits, working conditions d. cost, revenue
A dominant strategy is:
A. when one strategy is chosen by a firm first and determines the best strategies of the other players that follow. B. when one strategy is chosen and cannot be changed without making at least one of the players worse off. C. when one strategy is always the best for a player to choose, regardless of what other players do. D. None of these statements is true.
Assume that an unemployed person expects inflation to be 4.5 percent. In reality, inflation turns out to be 2.9 percent. If wage expectations lag behind actual price changes:
a. job offers below the reservation wage will decline, and the unemployment rate will rise. b. job offers above the reservation wage will rise, and the unemployment rate will fall. c. job offers above the reservation wage will decline, and the unemployment rate will rise. d. job offers above the reservation wage will decline, and the unemployment rate will fall. e. job offers below the reservation wage will increase, and the unemployment rate will fall.