A. Everything else remaining unchanged, if there is no wage rigidity in the market, how will equilibrium employment and wage rate change if there is a leftward shift in the demand curve for labor?
b. Everything else remaining unchanged, if there is no wage rigidity in the market, how will equilibrium employment and wage rate change if there is a rightward shift in the supply curve of labor?
a. Everything else remaining unchanged, and in the absence of wage rigidity, a leftward shift in the demand curve for labor will result in a lower equilibrium wage rate and a lower equilibrium employment level.
b. Everything else unchanged, and in the absence of wage rigidity, a rightward shift in the supply curve of labor will result in a lower equilibrium wage rate and a higher equilibrium employment level.
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Consider a market in which there is an import tariff. Which of the following is TRUE?
A) The lost consumer surplus equals the gain in producer surplus plus the government revenue plus the deadweight loss. B) The lost consumer surplus equals the gain in producer surplus. C) The lost consumer surplus equals the gain in producer surplus plus the government revenue. D) The lost consumer surplus plus the deadweight loss equal the gain in producer surplus plus the government revenue.
Which of the following does not represent an arbitrage transaction?
A. Traders buy silks where they are abundant and cheap, and haul them along a trail to another place where they would be quite scarce and valued. B. An investor buys a stock when the company is new and relatively unknown and then sells the stock for a much higher price when the company is well-known and profitable. C. Someone buys a block of Final Four tickets and scalp them at the game. D. A boat manufacturer buys the electrical components for its boats from the lowest cost supplier and then sells the boats to consumers.