Suppose that we observe that wages are falling while output is increasing. Holding the demand for output constant, what might cause this to happen?
What will be an ideal response?
Something must have shifted the labor supply curve to the right. This could have been due to any number of things. One possibility could be an increase in the population, and hence, in the potential labor force.
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The production possibilities frontier of an economy is based on the assumption that the: a. amount of consumer goods produced in the economy is constant during a given year. b. quality of labor available in the economy is variable during a given year
c. patent laws applicable in the economy are constant during a given year. d. level of technology available in the economy is variable during a given year. e. economy can either produce capital goods or consumer goods during a given year.
The dollar has depreciated if it buys less of a foreign currency.
a. True
b. False
Indicate whether the statement is true or false
Intraindustry trade is most common in the trade patterns of
A) developing countries of Asia and Africa. B) developed countries of Western Europe. C) all countries. D) None of the above.
The firm in the above figure breaks even when quantity is
A) A. B) B. C) C. D) D.