An adverse oil-price shock reduces labor demand. What happens to current employment and the real wage rate?
A. Both employment and the real wage rate would increase.
B. Both employment and the real wage rate would decrease.
C. Employment would increase and the real wage would decrease.
D. Employment would decrease and the real wage would increase.
Answer: B
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A retired athlete built a gym near his house that could be used for free by all the residents in the neighborhood. However, the overuse of the facilities soon led to irreparable damages. This is an example of the ________
A) tragedy of the commons B) pecuniary externality C) paradox of thrift D) prisoners' dilemma
The wedge between the buyers' price and the sellers' price is the same, regardless of whether the tax is levied on buyers or sellers
a. True b. False Indicate whether the statement is true or false
Between 2007 and 2008, the United States economy experienced
A. disinflation. B. deflation. C. inflation. D. a depreciation.
Which of the following models results in the greatest total profit, assuming a fixed number of firms with identical costs and a given demand curve?
A) Cournot B) Stackelberg C) Monopoly D) Perfect competition