A. increase the wage, increase employment
B. maintain the wage, increase employment
C. increase the wage, lower employment
D. maintain the wage, lower employment
Related Mcqs:
- Trade creation will more likely outweigh trade diversion for Country X that forms a customs union if the level of tariffs in Country X prior to the customs union is ________ and the total number of countries forming the customs union is _________?
A. relatively high; relatively large
B. relatively high; relatively small
C. relatively low ; relatively large
D. relatively low ; relatively small - With free trade suppose that the rest of the world can supply computers to Norway at a price of $1,500 Norway’s imports will now equal. Compared to What occurred in the absence of trade, Norway’s consumers surplus will _____ and its producer surplus will ____. Can you calculate these amounts? Try plotting the information of this table on a sheet of graph paper ?
A. 1,600 computers, decrease, increase
B. 1,600 computers, increase, decrease
C. 1,200 computers, decrease, increase
D. 1,200 computers, increase, decrease - With free trade, suppose that the rest of the world can supply calculators to Canada at a price of $30. Canada’s imports would now equal _____ and its consumer surplus would ____ relative to what occurred in the absence of trade. What is the change in consumer surplus? Refer to the figure that you have plotted ?
A. 20 calculators increase
B. 25 calculators decrease
C. 25 calculators increase
D. 30 calculators increase - According to supply-side economists, as tax rates are reduced, labor supply should increase. This implies that ?
A. there is no income effect when tax rates are changed
B. the income effect of a wage change is greater than the substitution effect of a wage change.
C. there is no substitution effect when tax rates are changed
D. the substitution effect of a wage change is greater than the income effect of a wage change - _____ 1954 study of U.S trade patterns showed that U.S exports were labor-intensive compared with U.S imports, even though the United States was widely regarded as a relatively capital-abundant nation ?
A. Paul Samuelson’s
B. Wolfgang Stolpher’s
C. Staffan Linder’s
D. Wassily Leontief’s - When free trade areas are set up the member countries trade with each other grows faster than their trade with other countries This is due to what economist call ?
A. trade diversion
B. trade channeling
C. trade creation and trade diversion
D. trade creation - For a competitive firm, its short run supply curve is ______ and its long run supply curve is _____?
A. SMC, LMC
B. SMC above SAVC, LMC above LAC
C. SMC below SAVC, LMC above LAC
D. SMC below SAVC, LMC bellow LAC - The Phillips curve shows the trade-off between _____ and _____?
A. the inflation rate, interest rates
B. the inflation rate, the unemployment rate
C. interest rates, output
D. output, employment - Which of the following is true with regard to a tax on labor income? Taxes on labor income tend to encourage ?
A. the unscrupulous to enter the underground economy
B. the elderly to retire early.
C. all the things described in these answers.
D. second earners to stay home.
E. workers to work fewer hours - Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?
XA. wages and rents should fall in Country A
B. wages and rents should rise in Country A
C. wages should rise and rents should fall in Country A
D. wages should fall and rents should raise in Country A
