Pedro, who knows nothing about construction, paid Benito to remodel a room in his house. Two years later, one wall in the remodeled room crumbled because Benito used poor-quality materials. This illustrates which economic problem?
a. adverse selection
b. screening
c. moral hazard
d. signaling
c
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Under the Bertrand Model of oligopoly
a. output will be greater than under monopoly but less than competitive output. b. output will be less than under monopoly but greater than competitive output. c. output will be equal to competitive output. d. output will be equal to monopoly output.
An increase in the supply of capital, which is a substitute to labor, will lead to a decrease in the demand for labor
Indicate whether the statement is true or false
The stimulus package of 2009 had the effect of
A) causing higher rates of inflation to occur. B) giving new foreign aid to help less developed countries. C) significantly raising the debt to GDP ratio. D) reducing the primary government deficit.
Answer the following statements true (T) or false (F)
1. An increase in the number of inexperienced workers in the labor force is likely to increase the unemployment rate relative to the level of output. 2. The total labor force includes all persons in the non institutional population who are either working or seeking work. 3. Much of the unemployment associated with recessions is cyclical in nature. 4. Frictional unemployment is caused primarily by automation. 5. Underemployment includes employed workers not performing at full capacity.