If the wage rate increases and firms in a perfectly competitive industry are hiring labor, then
A) the firms will quit using labor.
B) profits will increase.
C) market supply will decrease.
D) market price will decrease.
Answer: C
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Suppose a country's net exports equal $1.9 billion. Which of the following will happen if the volume of imports increases by $2 billion without any change in the volume of exports?
A) The country's net exports will be equal to $0.1 billion. B) The country's net exports will become negative. C) The country's net exports will be equal to $3.9 billion. D) The country's net exports will be zero.
Which of the following helps in reducing the problem of adverse selection in health insurance markets?
A) Insurance mandates B) High premiums C) High rates of taxation D) Insurance coverage
Pennsylvania's largest grower of fresh-to-market tomatoes announced in March 2009 he will no longer produce the crop because he can't find enough workers to harvest it. Though his tomato pickers made an average of $16
59 per hour last year, he said the relatively high wage is not enough to attract local labor to work the fields. In the market for tomato workers, what is TRUE? A) $16.59 is above the equilibrium wage rate B) $16.59 is the equilibrium wage rate C) $16.59 is below the equilibrium wage rate D) Cannot determine where the equilibrium wage rate is in comparison to $16.59 without more information.
In China prior to 1990, most residential buildings were dilapidated because:
a. people were not aware of maintenance and beautification techniques. b. the government did not encourage wastage of resources for such purposes. c. no one had a property right to a home. d. all the properties were inherited. e. the people had private property rights so they did not have an incentive to repair the houses.