The wage rate. is the price of a unit of labor. What happens to the supply of labor if the wage rate increases?
A. It increases.
B. It decreases.
C. It does not change.
D. Uncertain-economic theory has no answer to this question.
Answer: C
You might also like to view...
Comparable worth aims at
A) increasing the earnings of the least-skilled workers in the labor force. B) raising the relative wages paid in jobs traditionally dominated by women. C) reducing the relative income shares going to property owners. D) securing equal wages for people performing identical jobs. E) securing equal wages for people performing identical jobs and performing equally well.
When the demand for a product is less elastic than the supply
A) consumers pay the entire tax on the product. B) firms pay the entire tax on the product. C) consumers pay the majority of the tax on the product. D) firms pay the majority of the tax on the product.
If a 20% increase in price for a good results in a 15% decrease in quantity demanded, the price elasticity of demand is
a. 0.75. b. 1.25. c. 1.33. d. 1.60.
According to Figure 11.2, a shift from AD1 to AD2 will
A. Eliminate the GDP gap because of the increase in output. B. Move the economy to point Y and then the market mechanism will move the economy to point Z. C. Move equilibrium to point Y where the price level is higher than before. D. Move equilibrium to QF.