Suppose the wage rate in the labor market is $8 and more people entered the labor force, which of the following statements is correct?
A. If wages are sticky, the unemployment rate stays the same.
B. If wages are flexible, then wages will increase.
C. If wages are sticky, the unemployment rate increases.
D. If wages are flexible, the unemployment rate increases.
Answer: C
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The amount Jacqueline receives for selling cupcakes beyond the minimum she would be willing to sell the cupcakes for is called
A) consumer surplus. B) producer surplus. C) cooperative surplus. D) deadweight loss.
Scarcity:
a. ensures that people become satisfied with less than what they want. b. exists only during a recession. c. exists only in some countries. d. affects only poor people. e. requires people to make choices to satisfy their wants.
In 2010, the United States had a nominal GDP of $14,958 billion and a real GDP of $13,598 billion, what was the GDP deflator?
a. 100 b. 109 c. 110 d. 111
Which of the following represents a problem with the Chinese yuan becoming a reserve currency?
a. China does not have a large economy.
b. China does not have an open financial market.
c. China holds too many dollars.
d. The yuan is not currently part of the SDR.