Suppose the market for autoworkers is initially in equilibrium, but then the automakers purchase capital goods that are a substitute for workers. What happens in the market for autoworkers?
A) The equilibrium wage rate will increase and the equilibrium quantity of labor will decrease.
B) The equilibrium wage rate and the equilibrium quantity of labor will both increase.
C) The equilibrium wage rate and the equilibrium quantity of labor will both decrease.
D) The equilibrium wage rate will decrease and the equilibrium quantity of labor will increase.
C
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In 2000, Congress eliminated the earnings test for those ages 62 and up who still work
Indicate whether the statement is true or false
Which of the following most accurately describes what occurs during a time of inflation?
A) People must work longer to live as well. B) Prices rise faster than incomes. C) The average standard of living declines. D) The cost of living increases. E) The purchasing power of money falls.
Which of the following statements is the MOST accurate? The law of one price states
A) in competitive markets free of transportation costs and official barriers to trade, identical goods sold in different countries must sell for the same price when their prices are expressed in terms of the same currency. B) in competitive markets free of transportation costs and official barrier to trade, identical goods sold in the same country must sell for the same price when their prices are expressed in terms of the same currency. C) in competitive markets free of transportation costs and official barrier to trade, identical goods sold in different countries must sell for the same price. D) identical goods sold in different countries must sell for the same price when their prices are expressed in terms of the same currency. E) in competitive markets free of official barrier to trade, identical goods are sold at the same price regardless of transportation costs.
The alternative combinations of two goods that a consumer can purchase with a given money income is:
A. a demand curve. B. a budget line. C. a production possibilities curve. D. consumer equilibrium.