Which of the following is likely to cause a fall in the wage rate and an increase in the number of workers hired in a local cotton mill?
A) A reduction in wage paid in a nearby jute mill
B) The introduction of labor-saving technology in the mill
C) The introduction of labor-complementary technology in the mill
D) A decrease in the population of the region in which the cotton mill is located
A
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In the Mundell-Fleming model with perfect capital mobility, the domestic interest rates are determined by
a. monetary policy. b. the IS and LM curves. c. domestic savings and investment. d. budget deficits. e. none of the above.
Price elasticity of demand and price elasticity of supply are both influenced by
a. the availability of close substitutes for the product b. the proportion of the consumer's budget spend on the product c. the length of the adjustment period considered d. technological conditions such as the additional costs of increasing production e. none of the above
If a sandwich shop produces zero sandwiches, which of the following costs will it still incur?
A. Rented storefront B. Sandwich ingredients C. Employee's wages D. None of these costs will be incurred if they no longer make sandwiches.
If the demand curve is horizontal, then demand is:
A. elastic. B. unit elastic. C. perfectly inelastic. D. perfectly elastic.