Which of the following describes the relationship of price and quantity supplied based on the law of supply?
a. Firms are willing to produce a greater quantity of a good when the price of the good is higher.
b. Firms' production levels are not correlated with the price of a good.
c. The supply curve slopes downward.
d. As price increases, producers have more market power than consumers.
Answer: a. Firms are willing to produce a greater quantity of a good when the price of the good is higher.
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Collective bargaining between unions and employers often lead:
A) to wages that are lower than what workers would have received at equilibrium. B) to reduction in the unemployment rate. C) to wages that are higher than what workers would have received at equilibrium. D) to wages equal to what workers would have received at equilibrium.
Suppose a market begins in equilibrium. If supply increases, then at the original equilibrium price the quantity demanded is
A) is less than the quantity supplied and a surplus results. B) is less than the quantity supplied and a shortage results. C) exceeds the quantity supplied and a surplus results. D) exceeds the quantity supplied and a shortage results.
In 2014, ________ of the uninsured were younger than age 35
A) about 10 percent B) less than one-third C) over half D) almost 85 percent
If the capital—labor ratio is above the Golden Rule capital—labor ratio, then in the steady state,
A) capital per worker is above its maximum. B) output per worker is less than it would be at the Golden Rule capital—labor ratio. C) investment per worker exceeds output per worker. D) consumption per worker is not at its maximum.