Which of the following will definitely occur when there is an increase in demand for and a decrease in supply of milk?
A. a decrease in equilibrium quantity
B. an increase in equilibrium price
C. a decrease in equilibrium price
D. an increase in equilibrium quantity
Answer: B
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If a union negotiated a wage above the market equilibrium wage, we would find
A) a surplus of laborers at the negotiated wage. B) a shortage of laborers at the negotiated wage. C) higher efficiency of labor at the negotiated wage. D) lower worker productivity at the negotiated wage.
When will the central bank of a country be concerned about the exchange rate?
Workers compete against workers who have:
A. totally different human capital. B. similar human capital. C. the exact same type of human capital. D. all levels of human capital.
A tariff will typically
A. reduce the price, net of the tariff, that is received by sellers and increase the price paid by consumers. B. increase the price paid by consumers. C. reduce the price, net of the tariff, that is received by sellers. D. increase the price, net of the tariff, that is received by sellers.