Refer to Figure 17-1. Suppose the market price of doilies rises to $3. What happens to the curve given in the diagram?
A) There will be a movement along the curve.
B) Nothing, because labor's productivity has not changed.
C) The curve shifts to the right.
D) We cannot answer the question without knowing if Dale would want to hire more workers.
C
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An advertisement campaign that successfully convinces consumers to buy union-made products has the direct effect of shifting the
A) demand curve for union labor rightward. B) demand curve for union labor leftward. C) supply curve of union labor rightward. D) supply curve of union labor leftward.
A major source of inefficiency in barter economies is that they require
A) a standard of deferred payment to make trade possible. B) more liquid stores of value than do monetary economies. C) a double coincidence of wants in exchange. D) All of the above are correct.
Why is a bond considered to be a loan but a share of stock is not?
What will be an ideal response?
When prices of products are set below equilibrium,
A. society’s resources are inefficiently allocated. B. firms expand output to increase profits. C. firms earn excessively high profits. D. consumers benefit from surpluses of cheap goods.