Suppose a major computer virus struck the nation's computers and all hard drives were erased. What would happen in the labor market?
a. The real wage would increase and so would employment.
b. The real wage would not change, but employment would decrease.
c. The real wage would increase and employment would decrease.
d. The real wage would decrease and so would employment.
e. The real wage would decrease and employment would increase.
D
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In the above figure, Reggie's budget line rotates outward from BL1 to BL2. He initially consumes at point A. If his new consumption bundle is at point C, this implies that his demand curve for kiwi fruit
A) has shifted. B) is a vertical line. C) slopes downward. D) is a horizontal line.
The number of people who have gray hair is very high among residents living in Florida. A student concludes that living in Florida causes hair to turn gray. What is the flaw in this student's reasoning?
A) The student is drawing a false conclusion by making the mistake of omitting critical variables such as the age and gender of the residents. B) The student has failed to take into account other causes of gray hair. C) The student is using an inadequate sample size. D) The student is drawing a false conclusion; he is confusing cause and effect.