Unformatted text preview: re 14.1 below to answer the questions that follow. Figure 14.1 4) Refer to 14.1. Suppose there is a decrease in the fertility rate and this causes some men and women to place a Figure lower value on their time spent in nonmarket activities. This will cause A) the labor supply curve to shift to the left of S. B) the labor supply curve to shift to the right of S. C) the labor D) demand curve to shift from D to D'. the labor demand curve to shift from D' to D. Answer: B Diff: 2 Topic: The Classical View of the Labor Market Skill: Analytic AACSB: Analytic Skills 5) Refer to 14.1. If the demand for labor falls from D to D' and wages are sticky on the downward side, there will be Figure unemployment of ________ million. A) 200 B) 150 C) 100 D) 50 Answer: B Diff: 2 Topic: The Classical View of the Labor Market Skill: Analytic AACSB: Analytic Skills 6) Refer to 14.1. The demand for labor falls from D to D'. If firms enter into social, or implicit, contracts with Figure workers not to cut wages, then the wage rate will remain at $10 and A) employment B) will fall to 150 million. employment C) will fall to 200 million. employment D...
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- Fall '13
- Macroeconomics, AACSB, Reflective thinking, labor market, Conceptual AACSB