Consider the labor market for an industry that is initially in equilibrium. Which of the following changes can bring about a labor shortage in this industry?
a. A decrease in wage rate in another industry that uses similar labor resources
b. A decrease in wage rate on account of a government policy
c. An increase in the demand for the good produced by firms in this industry
d. A decrease in the productivity of existing workers under the influence of unions
c
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In the long run:
A) all factors of production are fixed. B) only some inputs of a firm can be changed. C) all firms earn positive economic profits. D) all factors of production can be changed.
Discuss the relationship between PPP and the Law of One Price
What will be an ideal response?
Hyperinflations are caused by
a. persistant falls in aggregate supply. b. increases in poverty levels. c. high levels of money growth over sustained periods of time. d. falls in the velocity of money.
A justification for government price supports on agricultural products that economists generally accept as potentially legitimate is
A. the market punishes innovation. B. the price variability needs to be dampened. C. the market favors milk producers. D. the market is unfair to poor farmers.