Country A specializes in the production of automobiles and 45 of its population works in the automobile manufacturing industry. A sharp increase in world prices for automobiles led to a boom in the automobile manufacturing industry in Country A.
However, the automobile manufacturers overestimated the demand for automobiles. This led to overproduction which resulted in a large stock of unsold cars. Which of the following is likely to happen in the near future?
A) Investment in Country A will increase.
B) The supply of credit in Country A will increase.
C) Household consumption in Country A will increase.
D) The unemployment rate in Country A will increase.
Question 2
A firm hires labor up to the point where the
A) real wage rate equals the nominal wage rate.
B) real wage rate exceeds the nominal wage rate.
C) additional hour of labor produces extra output that equals the real wage rate.
D) additional hour of labor produces extra output that equals the nominal wage rate.
E) firm can sell the extra output.
Exponential population growth.
Rural versus Urban Population, 1820–1860
Population size, 1970 - 2050
Cereal production in Africa may decrease by as much as 50% by 2080 in some areas
Breakdown of the Population by Schooling and Wages
Age-Standardized Suicide Rates (per 100 000 Population), Both Sexes, 2016