The discovery of a new oil field has attracted several new investors to Oiland. How will this affect Oiland's labor demand curve?
What will be an ideal response?
An increase in investment in Oiland will lead to an increase in production in Oiland. This will lead to an increase in the demand for labor. As a result, the labor demand curve of Oiland will shift to the right leading to an increase in the equilibrium wage rate and a decrease in unemployment.
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Oligopolists use advertising as a way of differentiating their products.
Answer the following statement true (T) or false (F)
Table 17.1 YearReal GDPPopulation1$575 billion22 million2$580 billion24 million3$605 billion25 million4$606 billion27 millionRefer to Table 17.1. The growth rate of the economy from year 2 to year 3 was
A. 4.0 percent. B. 4.2 percent. C. 4.1 percent. D. 4.3 percent.
The possible asymmetry of monetary policy is the central idea of the:
A. invisible hand concept. B. ratchet analogy. C. pushing-on-a-string analogy. D. bandwagon effect.
Andy purchases coffee from the local coffee shop. When the price of a cup increases by $0.50, Andy's
a. comsumer surplus decreases. b. producer surplus decreases. c. consumer surplus increases. d. producer surplus increases.