In Figure 33.4, what is the cost of labor to the firm after the imposition of the payroll tax, and how many workers will be hired?
A. W3 and L1.
B. W3 and L0.
C. W5 and L1.
D. W3 and L2.
Answer: C
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In the figure, the equilibrium price is initially $3 per bushel of wheat. If buyers come to expect that the price of a bushel of wheat will rise in the future, but sellers do not, the current equilibrium price will
A) rise. B) not change. C) fall. D) Perhaps rise, fall, or stay the same, depending on whether there are more demanders or suppliers in the market.
If two countries produce both wheat and sugar and one country has the comparative advantage in producing wheat than the other country must have the absolute advantage producing sugar
a. True b. False Indicate whether the statement is true or false
Aggregate demand equals: a. C + G + I + EX
b. C + G + I + EX + IM. c. C + G + I – EX + IM. d. C + G + I + EX – IM.
Samuelson and Solow believed that the Phillips curve offered policymakers a menu of possible economic outcomes
a. True b. False Indicate whether the statement is true or false