Figure 17.3 describes the labor market for a manufacturing industry. In the short run, an increase in the price of the good made by the workers will:
A. cause the equilibrium wage and the hours of labor used to increase.
B. not have an effect on this market.
C. cause the equilibrium wage to increase but will not change the hours of labor used.
D. cause the equilibrium wage and the hours of labor used to decrease.
Answer: A
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The marginal expenditure curve for labor is based on the assumption that
A) the most productive workers are hired first. B) the wage rate is independent of the quantity of labor employed. C) the market supply curve for labor is infinitely elastic. D) all workers are paid the same wage rate. E) none of the above
If Mike buys a bond today for $400 that pays him $500 in one year, what is the implied interest rate?
a. 80 percent. b. 125 percent. c. 20 percent. d. 25 percent. e. 22 percent.
Most immigrants to Country X are high-skilled workers. How would the wages of these workers be affected by changes in immigration levels?
a. An immigration increase would increase their wages. b. An immigration increase would not affect their wages. c. An immigration decrease would decrease their wages. d. An immigration decrease would increase their wages.
A healthy macroeconomy is characterized by: a. a high inflation rate
b. a high unemployment rate. c. a high standard of living. d. maximum profits for firms.