Stock prices in Richland declined suddenly after one of the largest banks in Richland faced bankruptcy. If animal spirits play an important role in shaping Richland's economy, which of the following is likely to happen assuming all else equal?
A) Equilibrium unemployment in Richland will fall.
B) Equilibrium wage levels in Richland will fall.
C) Investment by firms in Richland will increase.
D) Richland's consumption expenditure will increase.
B
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Why is it that the enforcement of contracts by government is so crucial to the conduct of business?
What will be an ideal response?
Refer to the graph shown. Demand is unit elastic when revenue is:
A. $4,000. B. $10,000. C. $6,000. D. $8,000.
Under rent control, landlords cease to be responsive to tenants' concerns about the quality of the housing because
a. with shortages and waiting lists, they have no incentive to maintain and improve their property. b. they become resigned to the fact that many of their apartments are going to be vacant at any given time. c. with rent control the government guarantees landlords a minimal level of profit. d. with rent control it becomes the government's responsibility to maintain rental housing.
Pete owns a small store. He has noticed that when he is not at the store monitoring his employees, his revenue goes down. What are two changes Pete could make to wages he pays his employees to correct this problem?