Why don't wages fall so that everyone with the skills and desire gets a job?
A. The government might prevent it, through minimum-wage legislation.
B. Labor unions might prevent it, through bargaining backed by the threat to strike.
C. Firms themselves might prevent it, by voluntarily choosing to pay higher wages than necessary.
D. All of these are reasons why wages may not fall to equilibrium.
D. All of these are reasons why wages may not fall to equilibrium.
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
Use the following table to answer the question below.Giovanni's Production Possibilities ScheduleJorge's Production Possibilities SchedulePounds of Green BeansPounds of CornPounds of Green BeansPounds of Corn02400480301802036060120402409060601201200800Who has the comparative advantage in the production of green beans?
A. Giovanni B. Jorge C. Both D. Neither
Explain the conditions that are met when a consumer has found the best affordable combination of goods to buy. (Use the terms budget line, marginal rate of substitution, and relative price in your explanation.)
What will be an ideal response?
Explain the distinction between investment and capital