In the above figure, starting at E3, if there is an increase in technology that causes a permanent increase in production capabilities
A) aggregate supply would shift to SRAS0 and LRAS1 would shift to LRAS0.
B) aggregate supply would shift to SRAS2 and LRAS0 would shift to LRAS1.
C) aggregate supply would shift to SRAS1 and LRAS0 would shift to LRAS1.
D) aggregate supply would shift to SRAS1 and then return to SRAS0.
A
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Suppose the elasticity of labor demand is 0.6. Then a decrease in the wage rate will:
A. Decrease total wage income B. Increase total wage income C. Have no impact on total wage income D. Have an indeterminate impact on total wage income
Why do some workers lose their job when the minimum wage is increased?
A) The increase in labor costs decreases the supply of the product, thereby raising the price of the good so that the equilibrium quantity decreases to zero. B) The increase in the minimum wage decreases the quantity of labor demanded. C) The demand for labor is perfectly inelastic. D) The supply of labor decreases. E) The demand for labor is perfectly elastic.
?Strawberries (pounds) 
Consider the above table. Assuming the government imposes a price floor on strawberries of $8 per pound, what would be the likely result?
A. No change, equilibrium would prevail. B. a shortage of 2,000 pounds of strawberries C. The quantity demanded of strawberries would fall to zero. D. a surplus of 2,000 pounds of strawberries
If the price of an inferior good rises, the income effect will result in households buying ________ of the good and the substitution effect will result in households buying ________ of the good.
A. more; more B. more; less C. less; more D. less; less