A decrease in wage rates in the United States will:
A. Decrease total wage income if labor demand is elastic
B. Increase total wage income if labor demand is inelastic
C. Increase total wage income if labor demand is elastic
D. Decrease total wage income regardless of the elasticity of labor demand
C. Increase total wage income if labor demand is elastic
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In two-part pricing
A) consumers pay a lump-sum for all the goods purchased. B) the consumer must pay a lump sum if he buys more than a certain number of units of a good. C) a firm charges more for units purchased on the weekend than for those purchased during the week. D) the average price paid per unit is higher with a small number of units purchased than if a large number of units is purchased.
A real estate salesperson sells a house in 2011 that was built in 1994 . How does this transaction get counted in the GDP statistics?
a. The price of the house and the real estate salesperson's commission are both included in 2011's GDP. b. Neither the price of the house or the commission is included in 2011's GDP. c. The real estate salesperson's commission but not the price of the house is included in 2011's GDP. d. The price of the house would be included in both 1994's GDP and the GDP for 2011.
In both price-taker and competitive price-searcher markets, when an increase in market demand disrupts a long-run equilibrium, it will lead to
a. higher short-run prices and long-run profits. b. higher short-run prices, short-run profits, and the entry of additional firms into the market. c. higher short-run prices and the exit of firms from the market due to economies of scale. d. no change in prices in the short run, but new firms will enter in the long run.
In equilibrium, if both covered interest parity and uncovered interest parity hold, the expected future spot rate is equal to
A) the current spot rate B) the expected forward rate C) the future spot rate D) the current forward rate