Suppose the market for autoworkers is initially in equilibrium, but then the demand for automobiles increases and simultaneously the automakers allow autoworkers less flexibility working 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 will increase and the equilibrium quantity of labor will increase, decrease or stay the same.
C. The equilibrium wage rate will increase, decrease or stay the same and the equilibrium quantity of labor will increase.
D. The equilibrium wage rate will decrease and the equilibrium quantity of labor will increase.
Answer: B
You might also like to view...
An indifference curve
A) connects a set of consumption bundles among which the consumer is indifferent. B) is only useful in analyzing apathetic consumers. C) connects a set of consumers who each have the same preferences. D) is only useful in microeconomics.
Let's be careful about defining our terms properly. Aggregate supply is the total value of
a. goods produced in the manufacturing sector that they are willing and able to supply at varying price levels b. goods and services that firms in the economy are willing and able to supply at varying price levels c. services that suppliers are willing and able to supply at varying price levels d. goods and services less the amount exported that firms are willing and able to supply at varying price levels e. goods and services including imports that firms are willing and able to supply at varying price levels
Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions: ATC = $6.00; AVC = $4.00; MC = $3.50; MR = $3.50. The firm should
A. increase output. B. remain at the same position. C. increase price. D. shut down.
The rich receive _____ all property income.
A. nearly B. about one-half of C. about one-quarter of D. a very small percentage of