Which of the following is an example of menu costs?
a. deciding on new prices
b. printing new price lists
c. advertising new prices
d. All of the above are examples of menu costs.
d
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When households and firms sell financial assets, such as government securities, the
A) market price of the securities increases. B) nominal interest rate falls. C) supply of money curve shifts leftward. D) demand for money curve shifts leftward. E) nominal interest rate rises.
The difference between technology and technological change is that
A) technology is product-centered, that is, developing new products with our limited resources while technological change is process-centered in that it focuses on developing new production techniques. B) technology is carried out by firms producing physical goods but technological change is an intellectual exercise into seeking ways to improve production. C) technology involves the use of capital equipment while technological change requires the use of brain power. D) technology refers to the processes used by a firm to transform inputs into output while technological change is a change in a firm's ability to produce a given level of output with a given quantity of inputs.
If a union sets the wage rate to maximize the total wage receipts of its members, the price elasticity of demand for labor would be
A) zero. B) numerically equal to 1. C) finite, but greater than -1. D) positive, but less than 1.
Markets can fail to achieve efficiency when
a. there are prices consumers do not think are fair. b. there are wages workers do not think are fair. c. trade puts people out of work. d. there are markets with imperfect competition.