In a labor market without an efficiency wage, minimum wage, or union wage, when the real wage rate exceeds the equilibrium real wage rate, there is a ________ of labor and the real wage rate will ________
A) surplus; fall
B) shortage; fall
C) shortage; rise
D) surplus; rise
E) surplus; not change because only efficiency wages or union wages can change.
A
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Which of the following types of unemployment can the classical model not explain?
a. Structural unemployment b. Cyclical unemployment c. Seasonal unemployment d. Frictional unemployment e. Temporary unemployment
What would happen in the market for loanable funds if the government were to decrease the tax rate on interest income?
a. the supply of loanable funds would shift right and investment would increase. b. the supply of loanable funds would shift left and investment would decrease. c. the demand for loanable funds would shift right and investment would increase. d. the demand for loanable funds would shift left and investment would decrease.
Eldin is a house painter. He can paint three houses per week. He is considering hiring his friend Murphy. Murphy can paint five houses per week. What is the maximum total output possible if Eldin hires Murphy?
a. 2 houses b. 3 houses c. 5 houses d. 8 houses
A _______ monopoly is an industry in which it makes economic sense to have only one provider.
A. competitive B. natural C. original D. specific