If the wage rate in the labor market is $17 and the productivity of workers decreases, which of the following statements is incorrect?
A. If wages are sticky, there will be a shortage in the labor market.
B. The labor demand curve shifts to the left.
C. If wages are flexible, there will be a decrease in wages.
D. If wages are sticky, there will be a surplus in the labor market.
Answer: A
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If the exchange rate ________, the quantity of dollars demanded ________ and there is a movement up along the ________ curve for dollars
A) falls; increases; supply B) rises; increases; demand C) falls; decreases; demand D) rises; decreases; supply E) rises; decreases; demand
Transfer payments are
a. included in GDP because they represent income to individuals. b. included in GDP because they eventually will be spent on consumption. c. not included in GDP because they are not payments for currently produced goods or services. d. not included in GDP because taxes will have to be raised to pay for them.