Refer to the labor market diagram where D is the labor demand curve, S is the labor supply curve, and MRC is the marginal resource (labor) cost curve. If this were a purely competitive labor market, the equilibrium wage rate and level of employment would be:
A. $5 and 3 respectively.
B. $6 and 4 respectively.
C. $7 and 5 respectively.
D. $8 and 3 respectively.
C. $7 and 5 respectively.
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Which of the following questions would economists most likely disagree about?
a. What will be the effect of the new minimum wage on the sales of a product? b. How much should a company increase the price of a product? c. How much will demand increase for a product if the price decreases by 2 percent? d. What will be the increase in production with new technology in place?
Even if everyone agreed on policy priorities, there would still be trade-offs related to economic policy.
Answer the following statement true (T) or false (F)
This curve is downward sloping because there is ______
a. a neutral relationship between the price and quantity demanded
b. a complementary relationship between price and quantity demanded
c. a positive relationship between price and quantity demanded
d. a negative relationship between price and quantity demanded
Which of the following is consistent with international trade theory?
A) The United States needs trade restrictions to stay competitive. B) The United States has been falling behind Europe and Japan because its economy is too open. C) The standard of living within a country is a function of the economic strength of the economy and not of its relative position. D) A country should strive for comparative advantage in manufacturing.