Suppose that the market for labor is initially in equilibrium. Suppose that workers' tastes change so that they choose to retire at age 70 rather than age 67 . Then the equilibrium wage
a. and the equilibrium quantity of labor will rise.
b. and the equilibrium quantity of labor will fall.
c. will rise, and the equilibrium quantity of labor will fall.
d. will fall, and the equilibrium quantity of labor will rise.
d
You might also like to view...
Which round of GATT led to the formation of the WTO?
What will be an ideal response?
When market exchange occurs voluntarily in a competitive market
a. choice incurs no opportunity cost b. the sum of consumer surplus and producer surplus is maximized c. both consumer surplus and producer surplus are eliminated d. buyers benefit at the expense of producers e. the exchange confers no net benefit to the participants
The money multiplier yielded by the deposit creation formula assumes that
a. banks hold no excess reserves. b. banks hold excess reserves. c. recipients of loans take some of the proceeds in cash. d. recipients of loans do not redeposit their funds in other banks.
A case study of NAFTA, with regard to the benefits for Canada from U.S. trade, found that:
a. Canada was not able to increase its exports due to barriers still remaining. b. Canada had modest gains but was harmed by immigration into the United States from Mexico. c. Canada had more trade diversion than trade creation and so was harmed overall. d. Canada had more trade creation than trade diversion and so benefited overall.