Suppose that a large lake in the middle of Minnesota evaporates, leaving more fertile farm land for growing corn available. Assuming that land and labor are complements in a farming production function, what would happen to the wages earned by workers and rents earned by landowners?
a. Both wages and rents would increase.
b. Both wages and rents would decrease.
c. Wages would increase, and rents would decrease.
d. Wages would decrease, and rents would increase.
c
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The demand curve for a monopoly is
A) horizontal because the demand is perfectly elastic. B) downward sloping. C) vertical because the demand is perfectly inelastic. D) upward sloping. E) undefined because it is the only supplier in the market.
The unemployment rate is computed by ________
A) dividing labor force by the adult population B) dividing the number of unemployed by the adult population C) multiplying the employment ratio by the adult population D) dividing the labor force by the number of unemployed E) none of the above
Refer to Scenario 5.2. Samantha's expected expense for her car is
A) $20,000. B) $19,000. C) $18,000. D) $17,500. E) $15,000.
What is the average total cost of hiring the 7th worker?
a. $400 b. $800 c. $1200 d. $1600