Other things remaining the same, which of the following is likely to happen if all homemakers in an economy start working as paid labor?
A) There will be a fall in both the wage rate and the employment level.
B) There will be an increase in both the wage rate and the employment level.
C) There will be an increase in the wage rate in the country and a fall in the employment level.
D) There will be a fall in the wage rate in the country and an increase in the employment level.
D
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The production possibilities curve represents the fact that:
A) the economy will automatically end up at full employment. B) an economy's productive capacity increases proportionally with its population. C) if all resources of an economy are being used efficiently, more of one good can be produced only if less of another good is produced. D) economic production possibilities have no limit.
In a barter economy with "n'' number of goods there will always be:
A. fewer than "n'' relative prices. B. "n''/2 relative prices. C. exactly "n'' relative prices. D. more than "n'' relative prices.
Refer to the above figure. A minimum wage has been set at WM. The amount of unemployment is
A. zero. B. at Qe. C. QSÂ minus QD. D. not computable from the information given.
Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Which of the following statements can be said of Country A? Country A:
A. has the comparative advantage in car and truck production. B. does not possess the comparative advantage in either good. C. has the comparative advantage in truck production only. D. has the comparative advantage in car production only.