Suppose the wage rate in a certain industry falls, yet firms hire fewer workers. The best explanation of this is that labor:
A. demand fell.
B. demand increased.
C. supply fell.
D. supply increased.
Answer: A
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Why is the U.S. trade deficit almost always larger than the U.S. current account deficit?
What will be an ideal response?
Incentives are not likely to pose a problem:
A. if the interests of the employees and the employers are perfectly aligned. B. if the interests of the employees and the employers conflict somewhat. C. as long as employers can exploit the employees. D. if the interests of the employees and the employers conflict.
Suppose the price elasticity of supply for soccer balls is 0.3 in the short run and 1.2 in the long run. If an increase in the demand for soccer balls causes the price of soccer balls to increase by 20%, then the quantity supplied of soccer balls will increase by about
a. 0.67% in the short run and 0.17% in the long run. b. 3% in the short run and 1.2% in the long run. c. 6% in the short run and 24% in the long run. d. 66.7% in the short run and 16.7% in the long run.
Refer to the graph shown.
Assuming each carnival game costs $1 and each Ferris wheel ride costs $2, a consumer with $10 to spend will optimally choose to consume at point:
A. A. B. B. C. C. D. D.