If the supply of labor increases while demand for labor is unchanged,
A) the real wage and labor productivity will increase.
B) the real wage will decrease and labor productivity will increase.
C) the real wage will increase and labor productivity will decrease.
D) the real wage and labor productivity will decrease.
D
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Suppose Canada has a population of 30 million people and a labor force participation rate of 2/3. Furthermore, suppose the natural rate of unemployment in Canada is 7%. If the current number of unemployed people is 2 million people, what can we conclude about Canada's economy?
A. There is no frictional unemployment present in the economy. B. The unemployment rate is above the natural rate of unemployment. C. The unemployment rate is below the natural rate of unemployment. D. There is no cyclical unemployment present in the economy.
Which of the following best represents negotiation costs?
A) Dinesh has to spend time and effort to make sure that the chemical factory is living up to the agreed upon bargain that it will reduce the pollution it is releasing into the local river by 50 percent. B) Laila needs to come up with enough cash to pay the owners of the paper manufacturing plant, its attorneys, accountants, and negotiators so that a bargain can be reached with the paper manufacturer to reduce air pollution. C) Esperanza has to spend time and effort locating and organizing all the other people who have been adversely affected by the strong odors emanating from the local slaughterhouse in order to initiate the bargaining process. D) Rafael has to spend time determining whether the fertilizer manufacturer, the lead smelter, or the oil refinery is the cause of pollution seeping into the groundwater in his local community.
Many people believe that monopolies charge any price they want to without affecting sales. Instead, the output level for a profit-maximizing monopoly is determined by:
A. Marginal revenue = Demand. B. Average total cost = Demand. C. Marginal cost = Demand. D. Marginal cost = Marginal revenue.
A rich nation will trade with a poor nation because the:
A. rich nation has the absolute advantage in producing all products. B. poor nation has the absolute advantage in producing all products. C. poor nation has the comparative advantage in producing a product. D. rich nation has the comparative advantage in producing all products.