Demand for workers in some industry declines. These workers are reluctant to have a cut in their nominal wage. However,
a. inflation will raise their real wage and so increase the number of available workers.
b. inflation will raise their real wage and so decrease the number of available workers
c. inflation will reduce their real wage and so increase the number of available workers.
d. inflation will reduce their real wage and so decrease the number of available workers.
d
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A shortage causes the
A) demand curve to shift leftward. B) supply curve to shift rightward. C) price to fall. D) price to rise.
If Mateo is paid $25,000 to sell his crop of tomatoes even though he would have been willing to have sold the crop for as little as $20,000, this indicates that
a. Mateo received no producer surplus from the transaction. b. Mateo received $5,000 of producer surplus from the transaction. c. Mateo received $20,000 of producer surplus from the transaction. d. Mateo received $25,000 of producer surplus from the transaction.
According to the AS/AD model, if the economy is in a recession and the Fed wants to increase output and employment, it should:
A. raise reserve requirements. B. act to increase the money supply. C. act to decrease the money supply. D. raise interest rates.
The whole class of goods that will be underproduced or not produced at all in a completely unregulated market economy are referred to as
A. free goods. B. Pareto goods. C. public goods. D. private goods.