Suppose in Country X, anticipating high inflation in the economy, wages of workers are increased in the beginning of a financial year. However, prices remain unchanged during the year. Everything else remaining constant, which of the following will be observed in this economy?
a. The cost of labor, that is the real wage will decline
b. The current profits of the firm will rise
c. Aggregate supply in the economy will increase
d. Annual production in the economy will remain unaffected
e. The aggregate supply curve will move to the left
e
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When World War II (1941–45) came, the U.S. civilian labor force could be expanded only by about 30 percent
Indicate whether the statement is true or false
The shape of marginal cost is determined by
A) the shape of average cost. B) the shape of marginal product. C) the shape of total variable cost. D) all of these choices.
The point where the PPF intersects the horizontal axis is
What will be an ideal response?
e-Bay
Find the price of a new Fender Squier Stratocaster guitar on eBay (you may use either the “Buy it Now” price or the final sale price from a recent auction). Compare this to the price of a new Fender Squier Stratocaster at Sam Ash and Musician’s Friend. Questions:
- How do the prices compare? Are the prices fairly close?
- Does the existence of the internet reduce price differences among sellers for products such as this?
- Revisit eBay and search for a Fender Stratocaster produced between 1960 and 1979. State the price (the final sale price or the “Buy it Now” price) and the vintage of the item you found. Has the availability of sites such as eBay made it easier to find such items? How does this affect the gains to trade for buyers and sellers?