Suppose that an industrial accident at a factory destroys a significant number of high-speed blenders that bartenders use to mix frozen drinks. What will happen in the labor market for bartenders?
a. Both wages and employment will increase.
b. Both wages and employment will decrease.
c. Wages will increase, and employment will decrease.
d. Wages will decrease, and employment will increase.
b
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An international organization that buys and sells a commodity to maintain its price is a
a. buffer stock b. common fund c. commodity stabilization fund d. customs union e. all of the above
The Coase theorem will hold only if:
A. the transactions costs are clearly identified and assigned. B. the contracts are enforceable. C. government will provide free mediation. D. None of these statements is true.
Classical economists used efficiency wage models to support their belief in a self-regulating economy
Indicate whether the statement is true or false
Many demographers expect world population to:
A. increase exponentially into the foreseeable future. B. decline from its current level in the next two decades. C. peak at 9 billion or fewer, and then decline. D. plateau at around 7.5 billion, and then continue to increase rapidly.