The payment of unemployment compensation tends to induce business firms to
A) lay off workers as opposed to lowering sales.
B) search for new workers for shorter periods of time.
C) lay off workers as opposed to increasing inventories and/or reducing hours worked for all employees.
D) recall previously laid off workers more rapidly.
C
You might also like to view...
According to traditional Keynesians, monetary policy as a tool to fight a recession
A) is very effective because interest rates will fall immediately. B) has an uncertain effect on the economy, depending on the direction of fiscal policy. C) is ineffective because interest rates will not fall. D) cannot be determined because traditional Keynesians do not consider monetary policy at all.
Suppose you purchase a call option to buy IBM common stock at $35 per share in September. The current price of IBM is 37 and the option premium is 4
What is the intrinsic value of the option? As the expiration date on the option approaches, what will happen to the size of the option premium?
In the market for bank credit, a large bank sometimes announces a change in interest rates. After the changes in interest rates are announced, other banks in the industry usually react by changing their rates in the same way. This is an example of:
A. monopolistic competition. B. implicit collusion. C. the kinked demand curve model. D. a cartel.
Which of the following is TRUE of an excise tax?
A. An excise tax is levied on purchases of particular good or service. B. Imposing an excise tax shifts the market demand curve. C. An excise tax is always a unit tax. D. An excise tax is based on an individual's income.