Suppose that the market for labor is initially in equilibrium. If the firm employs labor-augmenting technology, 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.
a
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Refer to Scenario 1-1. Had the firm not produced and sold the last 3,000 cell phones, would its profit be higher or lower, and by how much?
A) Its profit will be $6,000 lower. B) Its profit will be $700 lower. C) Its profit will be $700 higher. D) Its profit will be $6,700 higher.
Ashley bakes bread that she sells at the local farmer's market. If she purchases a new convection oven that reduces the costs of baking bread, the
a. supply curve for Ashley's bread will increase. b. supply curve for Ashley's bread will decrease. c. demand curve for Ashley's bread will increase. d. demand curve for Ashley's bread will decrease.
When an infinite value is placed on human life, policymakers who rely on cost-benefit analysis
a. are forced to pursue any project in which a single human life is saved. b. are likely to make decisions that optimally allocate society's scarce resources. c. would not pursue any public project that would not save human life. d. would be forced to rely on private markets to provide public goods.
Explain why changes in the central bank's inflation target will shift the dynamic aggregate demand curve.
What will be an ideal response?