If an asymmetry of information is removed and laborers' preferences change against employment, this will shift the equilibrium in the labor market to the
A. northwest.
B. northeast.
C. southwest.
D. southeast.
Answer: A
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Assume that a perfectly competitive firm hires workers from a perfectly competitive market for labor. The marginal product of a worker is 10 units per day
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In the above figure, at what minimum wage is the unemployment level equal to 200 million hours?
A) $2 per hour B) $4 per hour C) $6 per hour D) $8 per hour
Which of the following is an example of a discretionary fiscal policy action?
A) increasing government spending to deal with a recession B) a decrease in tax revenues as taxpayers' incomes decrease C) increasing the minimum wage rate D) raising regulations in the health care industry
Molly needs 30 minutes to wash the car and 45 minutes to mow the lawn. Renee needs 1 hour to wash the car and 2 hours to mow the lawn. Which of the following statements is correct?
a. Molly should specialize in both tasks. b. Renee should specialize in both tasks. c. Each woman should specialize in the task in which she has the absolute advantage. d. Absolute advantage is not an appropriate guide for determining specialization. e. Neither woman should specialize.