When the wage falls:
A. all workers will work more hours.
B. all workers will work fewer hours.
C. some workers will work more hours and some workers will work fewer hours, but on average, hours worked will fall.
D. some workers will work more hours and some workers will work fewer hours, but we don't know whether average hours will increase or decrease.
Answer: D
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If the wage rate is fixed at a certain level, the:
a. total wage cost curve is horizontal. b. total wage cost curve is a straight upward sloping line. c. MP must be constant. d. total wage cost curve will increase at an increasing rate. e. total wage cost curve will increase at a decreasing rate.
A perfectly inelastic demand:
A. means people will quickly change the quantity they purchase when price changes. B. means people will not respond to any change in price. C. is demonstrated by a perfectly horizontal demand curve. D. has an absolute value greater than 1.