Consider a labor market that is initially in equilibrium. When the labor supply curve shifts to the left while the labor demand curve remains unchanged, the:
a. equilibrium wage rate increases
b. price of the output that uses this labor resource decreases.
c. equilibrium number of workers hired increases.
d. equilibrium wage rate falls.
a
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A positive externality results when
A) economists are sure that a good or service provides benefits to consumers. B) someone pays for a good or service even though she is not directly affected by the production or consumption of it. C) people who live in one country benefit from the production of a good or service that occurs in another country. D) people who are not directly involved in producing or paying for a good or service benefit from it.
If market participants notice that a variable behaves differently now than in the past, then, according to rational expectations theory, we can expect market participants to
A) change the way they form expectations about future values of the variable. B) begin to make systematic mistakes. C) no longer pay close attention to movements in this variable. D) give up trying to forecast this variable.