Over time, there have been technological advances in the production of radios. At the same time, it has become less popular to listen to radio. Taking these two events into account, what would be the likely effect on the wages of workers who manufacture radios?
The technological advances have the effect of increasing the demand for radio workers. The reduced popularity of radio listening has the effect of decreasing the demand for radio workers. Thus, the overall effect on radio workers' wages is ambiguous.
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Why do sellers pay all of a tax when supply is perfectly inelastic?
A) because a perfectly inelastic supply means that the demand is elastic B) because the government requires firms to collect the tax C) because a perfectly inelastic supply means that the quantity supplied is quite sensitive to a change in price D) because a perfectly inelastic supply means that suppliers will produce the same amount regardless of the price E) because in this case the price of the good that suppliers receive and keep does not change
The quantity theory of money addresses the
A) long-run effect the quantity of money has on the price level. B) determinants of potential GDP. C) determinants of the equilibrium unemployment rate. D) short-run effect the quantity of money has on the price level.
Why do free trade proponents applaud successful trade deflection?
A) It circumvents trade restrictions within regional trade blocs. B) It increases trade restrictions within regional trade blocs. C) It promotes more rules of origin laws. D) It decreases incentives for trade diversion.
Money must be relatively "scarce" if it is to have value. True or False?
Indicate whether the statement is true or false.