Suppose the market for autoworkers is initially in equilibrium, but then suppose the automakers improve working conditions at the plants. What happens in the market for autoworkers?
A. The equilibrium wage rate and the equilibrium quantity of labor will both decrease.
B. The equilibrium wage rate and the equilibrium quantity of labor will both increase.
C. The equilibrium wage rate will increase and the equilibrium quantity of labor will decrease.
D. The equilibrium wage rate will decrease and the equilibrium quantity of labor will increase.
Answer: D
You might also like to view...
Juliana, Gabrielle, and Marcela want to start a business they are the only owners and the company does not issue stock. The type of business they want to start is a
A) partnership. B) corporation. C) sole proprietorship. D) Any of the above could be correct.
Some markets have many buyers and sellers but fall into the category of monopolistic competition rather than perfect competition. The most common reason for this is
A) firms in these markets make high profits. B) there are high barriers to entering these markets. C) firms in these markets sell identical products. D) firms in these markets do not sell identical products.
The longer the time horizon of a project, the more important choosing the right discount rate is
a. True b. False
A severe hurricane hits Florida, destroying large amounts of the citrus crop. What is the most likely effect of this on aggregate supply?
a. It will be unchanged. b. No effect, the economy will move along the curve to a higher price level. c. No effect, the economy will move along the curve to a lower price level. d. It will increase. e. It will decrease.