In situations where new technologies are considered substitutes for workers, demand for these workers will ________, resulting in ________ in the equilibrium wage
A) increase; a decrease B) decrease; a decrease
C) increase; an increase D) decrease; an increase
B
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Hector's wealth is zero, he expects to work for another 45 years at a constant salary of $80,000 and live for another 60 years. If yearly taxes are $20,000 and Hector completely smooths consumption over his lifetime, his annual consumption is
A) $37,500. B) $45,000. C) $60,000. D) $70,000.
Which of the following explains the recent decline in union membership in the United States?
a. smaller government safety nets b. slower technological change c. the change from a manufacturing to a service-based economy d. increasing market concentration e. none of the above
Yoyo's Frozen Yogurt, Inc is thinking of building a new warehouse. They believe that this will give them $50,000 of additional revenue at the end of one year, $60,000 additional revenue at the end of two years, and $70,000 in additional revenue at the end of three years. If the interest rate is 5 percent, Yoyo would be willing to pay
a. $140,000, but not $150,000. b. $150,000, but not $160,000. c. $160,000, but not $170,000. d. $170,000, but not $180,000.
When the Federal Reserve Banks decide to buy government bonds from banks and the public, the supply of reserves in the Federal funds market:
a. Increases and the Federal funds rate decreases b. Decreases and the Federal funds rate decreases c. Increases and the Federal funds rate increases d. Decreases and the Federal funds rate increases