The average number of years of schooling of workers in Argonia has increased. Which of the following is likely to be true if all other variables remain unchanged?
A) The unemployment rate in Argonia is likely to increase.
B) The income per worker in Argonia is likely to decrease.
C) The efficiency units of labor in Argonia is likely to increase.
D) The aggregate price level in Argonia is likely to decrease.
C
You might also like to view...
Consider two resource markets in which the demand curves slope downward. In market A, the supply curve is horizontal, equilibrium price is $6, and 100 units of the resource are hired. In market B, the supply curve is vertical, equilibrium price is $20, and 30 units of the resource are hired. Which of the following is true?
a. All of the resource earnings in market A are economic rent. b. All of the resource earnings in both markets are economic rent. c. All of the resource earnings in market B are economic rent. d. None of the resource earnings in either market is an opportunity cost. e. None of the resource earnings in either market is economic rent.
Which of the following is a feature of a bond market? a. Only households can borrow money through a bond market
b. Only corporations can borrow money through a bond market. c. Both households and corporations borrow money from a bond market. d. Both corporations and government borrow money from a bond market.