Figure 10.3 describes the labor market for a manufacturing industry. In the short run, an increase in the price of the good made by the workers will:
A. cause the equilibrium wage and the hours of labor used to increase.
B. not have an effect on this market.
C. cause the equilibrium wage to increase but will not change the hours of labor used.
D. cause the equilibrium wage and the hours of labor used to decrease.
Answer: A
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A) increase; import the good B) not change; import the good C) decrease; export the good D) decrease; import the good E) increase; export the good
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(a) The European Payments Union (b) The European Economic Community (c) The European Coal and Steel Community (d) The Marshall Plan
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A. intermediate goods and services, as well as final goods and services. B. intermediate goods and services only. C. final goods and services only. D. intermediate and final goods only.