In the classical model, what occurs if a wage of $20/hour results in unemployed workers?
A. Producers will quickly create more jobs and hire the unemployed workers, so unemployment is short-lived.
B. The wage rate will drop, more workers will be hired, and the unemployment rate falls.
C. The workers will go on strike to demand that more jobs be created.
D. The government will step in and order firms to hire more workers.
Answer: B
You might also like to view...
All economically efficient production plans are technologically efficient.
Answer the following statement true (T) or false (F)
Your U.S.-based company is selling parts to a company in Bangladesh. If the Bangladeshi company purchases a futures contract
A) the Bangladeshi company bears the exchange rate risk. B) your company bears the exchange rate risk. C) the companies share in the exchange rate risk. D) there is no exchange rate risk.
Which of the following is a legal remedy for a breach of the contract between parties?
a. Liquidated damages b. Imprisonment c. Unitization d. Specificity
The term "laissez-faire" suggests that:
A. land and other natural resources should be privately owned, but capital should be publicly owned. B. land and other natural resources should be publicly owned, but capital should be privately owned. C. government should not interfere with the operation of the economy. D. government action is absolutely necessary if the economy is to achieve full employment and full production.