The labor demand curve slopes downward because
A) the firm maximizes profits by hiring more labor when the real wage rate rises.
B) workers supply more hours of work when the real wage rate rises.
C) the firm maximizes profits by hiring more labor when the real wage rate falls.
D) workers supply fewer hours of work when the real wage rate rises.
C
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A possible reason a nation might impose a protectionist policy such as a tariff is to
A) encourage specialization in the good in which the nation has a comparative advantage. B) protect an infant industry from foreign competitors. C) increase the level of imports. D) slow domestic production.
In markets with asymmetric information
A) asymmetric information causes moral hazard and then it causes adverse selection. B) moral hazard causes adverse selection which in turn causes asymmetric information. C) asymmetric information causes adverse selection and then it causes moral hazard. D) adverse selection causes moral hazard which in turn causes asymmetric information.