If the price of a motorcycle is $5,000 . and workers who make motorcycles earn a wage rate of $50, how many workers will be hired when the labor market is in equilibrium?
a. There is not enough information to determine how many would be hired.
b. Hiring will continue until the price falls to $50 .
c. Hiring will continue until the wage rate rises to $5,000.
d. Hiring will continue until the MRP of the worker is greater than zero.
e. Hiring will continue until the MPP of the last worker is 0.01 motorcycles.
E
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Consumer demand for DVDs has increased over time because the price of DVD players has:
A) decreased, and DVD players and video cassette players are substitute goods. B) decreased, and DVD players and video cassette players are complementary goods. C) increased, and DVD players and video cassette players are substitute goods. D) increased, and DVD players and video cassette players are complementary goods.
Suppose that the demand and supply of money are initially in equilibrium, and that the demand for money increases. A monetary authority interested in keeping the money supply constant and the interest rate low must: a. adopt an expansionary monetary policy
b. adopt a contractionary monetary policy. c. increase the demand for money. d. decrease the demand for money. e. give up pursuing both goals at the same time.