An increase in the real wage would result in a
A. shift of the labor demand curve, causing a decrease in the number of workers hired by the firm.
B. movement along the labor demand curve, causing a decrease in the number of workers hired by the firm.
C. shift of the labor demand curve, causing an increase in the number of workers hired by the firm.
D. movement along the labor demand curve, causing an increase in the number of workers hired by the firm.
Answer: B
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An example of an intermediate good would be ________.
A. paper and ink bought by a publishing company B. groceries bought by a dentist for his family C. bricks bought by a homeowner who plans to build a patio in his backyard D. cars bought by a car-rental company
To increase the money supply, the Fed might: a. increase the discount rate and sell bonds in the open market
b. decrease the reserve requirement and buy bonds in the open market. c. increase the reserve requirement and sell bonds in the open market. d. increase the discount rate and lower the reserve requirement. e. sell government securities and increase the discount rate.
The substitution effect of a wage increase: a. results in an increase in the quantity of labor supplied. b. results in a decrease in the quantity of labor supplied. c. has no impact on the quantity of labor supplied
d. results in an increase in the quantity of leisure enjoyed.
Market power refers to the
a. firm's ability to control the industry's supply and demand b. joining of firms into a cartel c. firm's ability to control market price d. market's ability to control a firm's price e. industry's ability to control market price