If wages for a certain type of labor were higher in one market than in another, then
A) the differential would exist into the long run.
B) labor would move from the high wage market to the low wage market until wages were equal.
C) labor would move from the low wage market to the high wage market until wages were equal.
D) firms would not be acting as profit maximizers.
C
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If occupational safety laws were changed so that firms no longer had to take expensive steps to meet regulatory requirements, we would expect that
a. the demand for products in this industry would increase. b. the market price of products in this industry would decrease in the short run but not in the long run. c. the firms in the industry would make a long-run economic profit. d. competition would force producers to pass the lower production costs on to consumers in the long run.
The conventional fiscal policy to fight inflation would be to
A. increase the rate of monetary growth. B. decrease the rate of monetary growth. C. run a government surplus. D. run a government deficit.
Governments create barriers to entry with licenses or other regulations that limit entry.
a. true b. false
The purchase of a British Rolls-Royce by a U.S. citizen would result in all of the following except a(n):
A. Supply of payments to England B. Sale of dollars and the purchase of British pounds C. Increase in imports to the United States D. Gain of foreign exchange for the United States