If the labor demand decreases, what will happen to the real wage, employment, and output, assuming no change in the labor supply?
a. The real wage will increase, employment will decrease, and real output will increase.
b. The real wage will decrease, employment will decrease, and real output will increase.
c. The real wage will increase, employment will decrease, and real output will decrease.
d. The real wage will increase, employment will increase, and real output will increase.
e. The real wage will decrease, employment will decrease, and real output will decrease.
E
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The segmenting of customers into several small groups such as household, institutional, commercial, and industrial users, and establishing a different rate schedule for each group is known as:
a. first-degree price discrimination b. market penetration c. third-degree price discrimination d. second-degree price discrimination e. none of the above
We define net exports to be:
A. exports minus imports. B. imports minus exports. C. imports divided by exports. D. imports plus exports.
Why are bonds less risky than stocks?
a. The dividend given on shares is usually less than the coupon-rate on bonds. b. Bonds can be issued only by the government whereas shares are issued by private firms. c. Bondholders have a claim on the assets of the firm whereas the shareholders do not. d. Shareholders are entitled to a share of the company's earnings. e. The higher the profit of the firm, the greater the share of the bondholders.
Government spending has no effect on resource allocation since the government simply engineers a transfer of private goods and services from one group in the economy to some other group
Indicate whether the statement is true or false