Workers in the textile industry are laid off during a recession because they are unwilling to accept a wage cut, unless they know that workers in other industries are receiving similar cuts. This example is consistent with the
A. social contract explanation of unemployment.
B. relative-wage explanation of unemployment.
C. explicit contract explanation of unemployment.
D. efficiency wage explanation of unemployment.
Answer: B
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Empirical evidence shows that the impact of government budget deficits and surpluses on the equilibrium interest rate is quite large
Indicate whether the statement is true or false
In national income accounting, (S + T) is
A) the portion of total income not consumed. B) net national product. C) the methods of financing the government deficit. D) the final output firms absorb as investment.
The single most important factor that determines market structure is
a. location b. firm size c. number of firms in the industry d. price e. complementarity of the goods
Kurt decided to increase the number of stocks in his portfolio. In doing so, Kurt reduced
a. both the firm-specific risk and the market risk of his portfolio. b. the firm-specific risk, but not the market risk of his portfolio. c. the market risk, but not the firm-specific risk of his portfolio. d. neither the market risk nor the firm-specific risk of his portfolio.