Multiple Choice
If the relative price of one product rises and labor is mobile, then:
A) the percentage increase in the equilibrium real wage will be exactly the same as the percentage increase in the relative price.
B) the percentage increase in the equilibrium real wage will be lower than the percentage increase in the relative price.
C) the percentage increase in the equilibrium real wage will be higher than the percentage increase in the relative price.
D) the equilibrium real wage will not change.
Correct Answer:
Verified
Correct Answer:
Verified
Q27: In equilibrium, with diminishing marginal products, the
Q28: Some economists believe that an extended safety
Q29: If a nation begins to trade, it
Q30: A "specific" factor of production is:<br>A) critical
Q31: In general, the gains to some resources
Q33: Which of the following is NOT a
Q34: (Table: Sales and Payments) Suppose that the
Q35: In the two-sector (manufacturing and agriculture) specific-factors
Q36: If we consider the two-sector (manufacturing and
Q37: If trade causes shifts in production so