Lawyers are required to pass a comprehensive bar exam to be licensed to practice law. What effect should this have on the number of lawyers, the wages they receive, and the price people have to pay to receive legal services?
What will be an ideal response?
This is a barrier to entry that will decrease the supply of labor in the legal profession. This will result in higher wages and fewer workers. The prices of legal services will increase as well.
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When employment discrimination results from the personal prejudices of employers, economic theory suggests that
a. competitive forces will tend to reduce discrimination. b. the wages of employees who are discriminated against will rise. c. an employer who discriminates will have the same costs as those who do not discriminate. d. discrimination by an employer will reduce production costs since the employer can pay lower wages.
Which of the following is NOT a characteristic of a monopolistically competitive market?
A. There is only one firm selling a product. B. There are many firms selling products that are similar but not identical. C. There are many firms that have some control over price. D. There are no artificial barriers to entry.
Rick lost his job as a logistics and distribution coordinator nearly three years ago. After a long and failed search, Rick finally gives up and stops looking for a new job
Rick's decision to suspend his job search causes the unemployment rate to ________ and the labor force participation rate to ________. A) increase; stay the same B) increase; increase C) increase; decrease D) stay the same; decrease E) decrease; decrease
According to the liquidity preference theory, the demand for money is ________ related to aggregate output and ________ related to interest rates
A) negatively; negatively B) negatively; positively C) positively; negatively D) positively; positively