Suppose each worker must use only one shovel to dig a trench, and shovels are useless by themselves. In the short run, an increase in the price of shovels will result in
A) fewer shovels being purchased.
B) more workers being hired.
C) a decrease in the firm's output.
D) no change in the firm's output.
D
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Refer to Table 4-7. What is the equilibrium hourly wage (W*) and the equilibrium quantity of labor (Q*)?
A) W* = $10.50; Q* = 1,180,000 B) W* = $10.50; Q* = 590,000 C) W* = $9.50; Q* = 570,000 D) W* = $11.50; Q* = 570,000
The law of demand describes the:
A. inverse relationship between price and quantity demanded. B. direct relationship between price and quantity demanded. C. inverse relationship between income and quantity demanded. D. direct relationship between income and quantity demanded.
Contractionary fiscal policy in the United States will increase the Japanese trade surplus.
Answer the following statement true (T) or false (F)
A curve showing the lowest cost at which a firm is able to produce a given level of output in the long run is
A) a long-run production function. B) a long-run marginal cost curve. C) a minimum efficient scale curve. D) a long-run average total cost curve.