When the supply of labor increases, according to the specificfactors model, which of the following is NOT likely to happen?
a. The number of workers employed will increase.
b. The wages for workers will decline.
c. The marginal product of labor shifts to the right.
d. The overall wage in the economy increases in the short run.
Ans: d. The overall wage in the economy increases in the short run.
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One of the problems associated with the utilitarianism is that it does not recognize that
A) taxing those with higher incomes results in less work effort. B) each individual receives a different marginal benefit from a dollar's worth of income. C) equity is achieved when there is no poor and no rich. D) similar individuals should be treated the same.
Which of the following best describes the income velocity of money?
A) V = PMs B) V = Y C) V = PY/Ms D) V = Ms/PY
____ make(s) it difficult for an oligopoly to maintain a cooperative outcome with low production, high prices, and monopoly profits
a. Self-interest b. Incentives to cheat c. Government antitrust policy and regulation d. All of the above
Resource X has many close substitutes, whereas resource Y has no close substitutes. Other things equal, we would expect:
A. the demand for resource Y to be more elastic than the demand for resource X. B. resources X and Y to be close substitutes. C. resource X to be more expensive than resource Y. D. the demand for resource X to be more elastic than the demand for resource Y.