An increase in the price of the output produced by labor will:
A. decrease the demand for labor.
B. increase the supply of labor.
C. increase the demand for labor.
D. decrease the supply of labor.
Answer: C
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What two conditions are met when a consumer is maximizing utility?
What will be an ideal response?
Refer to Figure 9.7. Before the policy was implemented, producer surplus was
A) $30. B) $60. C) $45,000. D) $90,000. E) $180,000.
In a competitive market economy, a resource in short supply will be allocated
a. so that each firm gets enough to keep producing some portion of its output. b. according to how much each firm purchased before the shortage. c. to those firms that can make the most profitable use of it. d. by government regulation.
Suppose that the market for labor is initially in equilibrium. Suppose that workers' tastes change so that they choose to retire at age 70 rather than age 67 . Then the equilibrium wage
a. and the equilibrium quantity of labor will rise. b. and the equilibrium quantity of labor will fall. c. will rise, and the equilibrium quantity of labor will fall. d. will fall, and the equilibrium quantity of labor will rise.