How would each of the following events affect the level of employment and the real wage rate? Explain which curves in the labor market diagram would be affected and show your work.(a)The stock market falls sharply.(b)A war destroys a substantial amount of a country's physical capital. (c)A new law reduces immigration of workers into the country.
What will be an ideal response?
| (a) | Lower wealth shifts the labor supply curve to the right; the new equilibrium has higher |
| (b) | The loss of capital lowers the marginal product of labor, reducing labor demand; the shift of the |
| (c) | Reduced labor supply causes a rise in the real wage rate in equilibrium and a decline in |
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Using the above table, at a price of $70, there is
A) a surplus of 150 units. B) a shortage of 120 units. C) a surplus of 270 units. D) a shortage of 150 units.
According to research, which of the following individuals is more likely to vote regularly?
a. Rachelle, who has a college degree b. Sandra, who is recently divorced c. Tyrone, who is unemployed d. Rocky, who recently relocated
All of the following are point sources, EXCEPT
a. publicly-owned treatment works (POTW) b. factory smokestack b. recreational motor boat d. urban runoff
Consider a monopolist attempting to engage in limit pricing with total costs C(Q) = 200 + 10Q. The market (inverse) demand for its product is P = 150 ? 2Q. Currently, the monopolist produces 40 units of output. Assuming the potential entrant has the same cost structure as the incumbent monopolist, is it profitable for the entrant to produce 20 units of output?
A. No, since the market price of $70 is less than the average total cost of producing 20 units. B. No, since the market price of $30 is less than the average total cost of producing 20 units. C. Yes, since the market price of $70 is greater than the average total cost of producing 20 units. D. Yes, since the market price of $30 is greater than the average total cost of producing 20 units.