Consider the labor market for computer programmers. During the late 1990s, the value of the marginal product of all computer programmers increased dramatically. Holding all else equal, the equilibrium quantity in the labor market for computer programmers
a. increased.
b. decreased.
c. did not change.
d. It is not possible to determine the equilibrium quantity.
a
You might also like to view...
Figure 10-4
?
Figure 10-4 shows the industry’s supply and demand curves in panel (1) and the cost curves of a firm in the industry in panel (2). At S2, the firm is
A. going to shut down. B. incurring losses. C. earning zero economic profits. D. earning economic profit greater than zero.
The after-tax rate of return is defined as the pretax profit rate
a. minus the rate at which profits are taxed. b. multiplied by 1 minus the rate at which profits are taxed. c. divided by 1 minus the rate at which profits are taxed. d. plus investment credits. e. None of the above
Which of the following does the aggregate expenditure model help explain?
a. price-level changes b. stagflation c. shifts in the aggregate supply curve d. short-run business cycles
Demand determines price entirely when
A. demand is downward sloping. B. supply is perfectly inelastic. C. supply is perfectly elastic. D. demand is perfectly inelastic.