Long-run aggregate supply curve in the classical model
A. is the level of real GDP corresponding to 100 percent labor force participation.
B. is the level of real GDP corresponding to the natural rate of unemployment.
C. is determined by the capital stock of the economy, not the labor force.
D. is a downward sloping line.
Answer: B
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The above figure shows the labor market in an undeveloped nation. A minimum wage has an effect on the market for low-skilled labor if it is set at
A) $2.00. B) $3.00. C) $4.00. D) all of the above
Your boss gives you an increase in the number of dollars you earn per hour. This increase in pay makes
What will be an ideal response?
Which of the following is not true of employers who discriminate in a competitive market?
A. The employer will likely have to pay higher wages. B. The employer will likely be at a competitive disadvantage. C. The employer will likely have higher productivity. D. The employer will likely have higher costs than non-discriminating firms.
In the graph shown, which of the world supply curves is associated with a trade balance?
A. WAS0 B. WAS1 C. WAS2 D. None create surpluses.