Suppose there are 100 firms in a market and all are identical. Firm A will hire 20 workers when the wage rate is $10, 25 workers when the wage rate is $9, and 30 workers when the wage rate is $8. The equilibrium wage rate for a number of years has been
$9. If the wage rate falls to $8, we know that
A) the quantity demanded for the market will increase to 3,000 workers.
B) the quantity demanded for the market will increase to more than 3,000 workers.
C) the quantity demanded for the market will increase to less than 3,000 workers.
D) the quantity demanded for the market will increase, but we can't tell which of the above answers is correct.
Answer: A
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A perceived permanent rise in the rate of money growth will cause what long-run effects in the economy?
a. a rise in the nominal rate of interest and a rise in inflation by the same percentage b. a rise in the nominal rate of interest and a rise in real GDP by the same percentage c. a fall in the nominal rate of interest and a rise in inflation by the same percentage d. a fall in the nominal rate of interest and a fall in real GDP by the same percentage
The $14.3 billion U.S. craft beer market is being subsidized at local, state, and even federal government levels, and the taxpayers pay for these subsidies. Economists know that these subsidies make Americans poorer on the whole
Why is it so difficult for U.S. taxpayers to end these subsidies for the craft beer market, a market which has been described as "booming" and "highly successful"?
The circular flow diagram of economic activity is a model of the
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