Suppose the market for autoworkers is initially in equilibrium, but then the demand for automobiles increases and simultaneously the automakers allow autoworkers less flexibility working at the plants. What happens in the market for autoworkers?
A) The equilibrium wage rate will increase and the equilibrium quantity of labor will increase, decrease or stay the same.
B) The equilibrium wage rate will increase, decrease or stay the same and the equilibrium quantity of labor will increase.
C) The equilibrium wage rate and the equilibrium quantity of labor will both decrease.
D) The equilibrium wage rate will decrease and the equilibrium quantity of labor will increase.
A
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OPEC is an example of a:
A. monopsony. B. monopoly. C. duopoly. D. cartel.
The above table shows the total product schedule for Hair Today, a hair styling salon. Based on the table, the marginal product for Hair Today
A) never reaches a maximum. B) decreases after the 1st worker. C) reaches a maximum with the 4th worker. D) reaches a maximum with the 3rd worker. E) reaches a maximum with the 5th worker.
The saving rate has the following characteristic in Solow's exogenous growth model
A) it increases with output. B) it first decreases, then increases with output. C) it first increases, then decreases with output. D) it is constant.
An increase in the demand for a good that is produced by many firms will
A. increase all of their respective marginal cost curves. B. increase all of their respective marginal revenue curves. C. decrease all of their respective marginal revenue curves. D. decrease all of their respective marginal cost curves.