Describe the factors that could cause an increase in the wage rate of workers.
What will be an ideal response?
Anything that increases the demand or reduces the supply of labor will result in an increase in the wage for those workers employed. Increases in the demand for labor could be caused by an increase in the price of the product produced, and increase in technology or anything else that increases the productivity of workers. A decrease in the supply of labor could be accomplished by unionizing.
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Since an individual spends a small share of the income on salt, the elasticity of demand is likely to be low.
Answer the following statement true (T) or false (F)
When the Fed buys $10 million in T-bills, interest rates will ________ because the LM curve shifts ________
A) fall; left due to the increase in the demand for money and loans B) rise; right due to the increase in the supply of money and loans C) fall; right due to the increase in the supply of money and loans D) rise; left due to the increase in the supply of money and loans
If a 1 percent increase in price leads to a .7 percent increase in quantity supplied, the short-run supply curve is:
a. elastic. b. inelastic. c. unit elastic. d. perfectly inelastic.
High-end retailers spend a lot on architecture, displays, and packaging in order to take advantage of the:
A. Hindsight bias B. Confirmation bias C. Availability heuristic D. Framing effect