Which of the following would not be considered a market distortion:
a. minimum wage
b. union-negotiated wage
c. monopsony wage
d. efficiency wage
e. all of the above are market distortions
D
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If a significant portion of firms in the economy does not immediately adjust product prices, then the short-run aggregate supply curve
A) slopes downward. B) slopes upward. C) is horizontal. D) is vertical.
A negative income tax program is
a. based on government cash payments to the poor that are linked to their income levels b. basically an income tax, meaning you receive what you earn then pay your taxes for the poor who don't pay tax c. basically in-kind assistance d. designed to provide a maximum level of income to the poor e. based on cash payments that increase as income increases
Economists usually assume that ________ is a fixed input in the ________ run.
A. labor; long B. capital; long C. labor; short D. capital; short
Which market adjusts the quickest in response to shocks to the economy?
A. The goods market B. The labor market C. The asset market D. The asset, labor, and goods markets adjust at about the same speed to eliminate a disequilibrium in the macroeconomy.