Which of the following describes what would happen after an increase in oil prices?
a. A downward shift of the aggregate supply curve as unit costs decrease, followed by a gradual increase in the wage as employment increases, leading to a leftward shift of the aggregate supply curve
b. An upward shift of the aggregate supply curve as unit costs increase, followed by a gradual decrease in the wage as employment decreases, leading to a leftward shift of the aggregate supply curve
c. An upward shift of the aggregate supply curve as unit costs increase, followed by a gradual decrease in the wage as employment decreases, leading to a rightward shift of the aggregate supply curve
d. A downward shift of the aggregate supply curve as unit costs decrease, followed by a gradual decrease in the wage as employment decreases, leading to a rightward shift of the aggregate supply curve
e. An upward shift of the aggregate supply curve as unit costs increase, followed by a gradual decrease in the wage as employment increases, leading to a rightward shift of the aggregate supply curve
C
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Japanese employers tend to hire employees right out of college and train them for a lifetime job with the company. Over time they found that women often, but not always, married after a few years and left the company so they were not good training investments. Based on this experience, and despite the exceptions, firms stopped hiring any women for jobs that require substantial training. This
practice is called a. economic discrimination. b. statistical discrimination. c. compensating differentials. d. the substitution effect.
Why does equilibrium in the market for a traded good not occur where that country's quantity demanded equals quantity supplied?
a. Because equilibrium occurs where demand equals supply. b. Because markets are never in equilibrium. c. Because some of the good is imported or exported. d. Because there are several demand curves, and the market can't choose between them. e. All of the above are correct.
Concentration ratios may be inaccurate indicators of the degree of monopoly power in an industry because:
A. they include interindustry competition. B. foreign competition is not considered. C. they are only calculated for local and regional markets. D. they do not distinguish between normal and economic profit.
Marginal cost is defined by the slope of the total revenue curve.
Answer the following statement true (T) or false (F)