If labor supply and labor demand both increase, employment
a. and the real wage rate will both increase
b. will increase but the real wage rate will fall
c. will increase but the real wage rate will remain constant
d. and the real wage rate will remain constant
e. will increase but the effect on the real wage rate will depend on the magnitude of the shifts
E
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In 1997 the Federal Trade Commission was granted a preliminary injunction on a proposed merger between Staples and Office Depot
The FTC was able to convince the federal district court that allowing the merger would create the potential for anticompetitive prices since it would give the newly merged company a 75% market share and would only leave Office Max as the remaining office supply superstore. Critically evaluate the FTC's use of "office supply superstores" as the relevant market.
If the Federal government enacts a new excise tax of $1.50 per case of soda. Which of the following is most likely to occur?
a. Consumers of soda will pay a higher price and buy a larger quantity. b. Consumers of soda will pay a higher price, which will increase the profits of soda companies, inducing them to sell a larger quantity. c. Consumers of soda will pay a higher price and buy a smaller quantity. d. Consumers of soda will buy less bottled water.
People respond to incentives. The best way to get people to practice economizing behavior is to:
a. convince them that the behavior will promote the greater good. b. make sure they will benefit from it. c. make sure they understand that everyone benefits from their economizing behavior. d. educate them on how much it will benefit society. e. establish fixed budgets that limit their freedom to change.
In the aggregate expenditures model, if aggregate expenditures (AE) are greater than GDP, then:
A. inventory is unchanged. B. inventory is accumulated. C. employment decreases. D. GDP increases.