If the demand for labor is unchanged, an increase in the supply of labor will lead to
A) a decrease in the quantity of labor demanded and a decrease in the equilibrium wage.
B) a decrease in the quantity of labor demanded and an increase in the equilibrium wage.
C) an increase in the quantity of labor demanded and an increase in the equilibrium wage.
D) an increase in the quantity of labor demanded and a decrease in the equilibrium wage.
D
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Given a constant rate of growth of real GDP, what would cause a fall in real GDP per capita?
a. a rate of population growth that is less than the rate of growth of real GDP b. a rate of population growth that is greater than the rate of growth of real GDP c. an increase in the size of the labor force d. an overall decrease in population
Firms in a perfectly contestable market will be forced to operate as efficiently as possible and to charge prices as low as long-run financial survival permits. Why?