In Figure 17.3, a decrease in the supply of labor will cause the equilibrium:
A. wage and hours of labor used to increase.
B. wage and hours of labor used to decrease.
C. wage to increase and hours of labor used to decrease.
D. wage to decrease and hours of labor used to increase.
Answer: C
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A balance of payments deficit is associated with a ________ of international reserves, while a balance of payments surplus is associated with a ________
A) loss; loss B) loss; gain C) gain; loss D) gain; gain
In general, the more of an individual's total budget that is spent on a given product, the
a. greater the supply-side response b. less elastic is the demand for that good c. more elastic is the demand for that good d. more the demand curve will shift when the price changes e. less the demand curve will shift when the price changes
When there are fewer substitutes available for a good, _____
a. the demand for the good is unit elastic b. the supply of the good is perfectly elastic c. buyers pay less of the tax than the sellers d. sellers pass more of the tax burden to the buyers
Long-run market supply curves are upward sloping if
A) firms are identical. B) the number of firms is restricted in the long run. C) input prices fall as the industry expands. D) All of the above.