What would be the best description of what we assume about money prices in the short run?
A) Money prices of goods and services vary.
B) Money prices of goods and services not related to each other.
C) Money prices of goods are fixed.
D) Money prices of services are fixed.
E) Money prices of goods and services are only temporarily fixed.
E
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A country's effective factor endowment is defined as its:
a. actual factor endowment times factor productivity. b. actual factor endowment times GDP. c. effective factor endowment times factor productivity. d. actual factor endowment divided by its factor productivity.
Refer to Table 4-4. Suppose that the quantity of labor supplied increases by 40,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?
A) W = $9.50; Q = 420,000 B) W = $9.00; Q = 410,000 C) W = $8.50; Q = 400,000 D) W = $8.00; Q = 390,000