Wage decreases lead to a decrease in aggregate quantity supplied
a. True
b. False
Indicate whether the statement is true or false
False
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The cost-output elasticity equals 1.4. This implies that:
A) there are neither economies nor diseconomies of scale. B) there are economies of scale. C) there are diseconomies of scale. D) marginal cost is less than average cost.
Economists believe that people who force themselves to always eat everything on their plate at a restaurant, regardless of how full they might feel, likely do so because:
A. they gain negative utility from insulting the chef. B. they overvalue the opportunity costs of their health and time involved with eating food they don't really want. C. they include the sunk cost of their meals in making their decision. D. they undervalue the true benefit of eating too much.
If Brazil voluntarily ships coffee to the United States in return for airplanes,
a. Brazil will benefit, but the United States will lose. b. one of the two nations will benefit and the other nation will lose since the trade does not increase the physical quantities of coffee and airplanes available. c. both Brazil and the United States will benefit since the trade allows each nation to acquire items. d. both Brazil and the United States will lose since there is no increase in the production of coffee or airplanes and the trade will involve certain transaction costs.
Based on the graph showing the Phillips curve, higher inflation is paired with ______.
a. lower unemployment
b. higher unemployment
c. zero unemployment
d. increasing unemployment