Frictional unemployment is
a. not inevitable; rather, it can be reduced to zero by well-designed public policies.
b. not inevitable; rather, it could be reduced to zero if by the elimination of unemployment insurance.
c. inevitable, because at any given time, jobs are being created in some firms and destroyed in other firms.
d. inevitable, because in some industries, wages are always set above the level that brings supply and demand into equilibrium.
c
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For a consumer not bound by the collateral constraint, a reduction in the price of the collateral leads to
A) nothing. B) an increase in current consumption and a decrease in future consumption. C) a decrease in current consumption and no change in future consumption. D) a decrease in current and future consumption.
In common value auctions
a. Every bidder know the value of the object being sold b. Each bidder makes the same estimate of the value of the good c. All bidders know the estimates of the others d. The true value of the item is common across bidders
A monopolist would charge ____ prices and produce ____ output than would exist under perfect competition. a. higher; less
b. lower; more. c. higher; more. d. the same; the same.
There are two alternative plans to evacuate a village of 900 people in the path of a deadly hurricane. According to the experiment by Amos Tversky and Danial Kahenman, which program will the majority of participants choose?
If Program A is adopted, there is a 33 percent chance of evacuating all 900 people and a 66 percent possibility of evacuating no one on time. If Program B is adopted, 300 people will be evacuated. a. Program A, because it sounds like it has a greater chance of success. b. Program B, because it sounds less risky. c. Either program, because they have equal predicted outcomes d. Neither program, because neither solves the problem