The equilibrium wage rate in an industry is determined by
A) finding where the market supply curve indicates that the substitution effect and income effect of a wage increase are offsetting.
B) the intersection of the market demand curve for labor and the market supply curve for labor.
C) the strength of the substitution effect relative to the elasticity of demand for labor.
D) whether workers or management are better at negotiating.
Answer: B
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Which of the following groups has the highest percentage below the poverty threshold?
a. householder with no high school diploma b. family with seven or more people c. black d. white e. single mothers
If the risk of holding assets in foreign countries rises relative to the risk of holding U.S assets, then
a. U.S. net capital outflow rises which increases the U.S. exchange rate. b. U.S. net capital outflow rises which decreases the U.S. exchange rate. c. U.S. net capital outflow falls which increases the U.S. exchange rate. d. U.S. net capital outflow falls which decreases the U.S. exchange rate.