Suppose the wage rate in a certain industry rises, yet firms hire more workers. The best explanation of this is that labor:
A. demand fell.
B. demand increased.
C. supply fell.
D. supply increased.
Answer: B
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Suppose a poor economy inches towards the steady state in Solow's exogenous growth model. What happens?
A) Consumption per capita decreases. B) Saving per capita decreases. C) The depreciation rate increases. D) The growth rate of output decreases.
Total utility increases if one more unit of a product is purchased and marginal utility is positive
a. True b. False Indicate whether the statement is true or false
Which statement is false?
A. Foreigners own a much greater percentage of the assets in the U.S. then they did in the early 1980s. B. Americans have assets of over $1 trillion in foreign countries. C. The dollar value of assets held by Americans in foreign countries has been declining since 1985. D. None of these statements are false.
The indifference curves for perfect substitutes are straight lines
a. True b. False Indicate whether the statement is true or false