A worker would be hurt least by inflation when the:
A. Worker anticipates inflation and increases savings at the bank
B. Worker is protected by a cost-of-living adjustment clause in an employment contract
C. Worker is protected by fixed annual increases in wages and benefits in an employment
contract
D. Government increases the level of social security retirement benefits to correct for the
effects of anticipated inflation
B. Worker is protected by a cost-of-living adjustment clause in an employment contract
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Assortative mating means that
A) poor women and rich men tend to marry. B) rich women and rich men tend to marry. C) rich women and poor men tend to marry. D) there are limited incentives to marry anyone.
Discuss the impact of efficiency wages on unemployment and wage inflexibility
Which of the following statements about exchange is true?
a. If everyone starts off with the same quantities of each good, it would be impossible to realize gains from trade. b. Exchange tends to move each good toward those individuals who value the good more highly. c. Exchange always results in one party being made better off and the other being made worse off. d. For trade to occur, everyone must start off with the same value of the good that is traded.
In the case of a natural monopoly, as the number of firms in the industry increases, the average cost of producing a:
A. fixed number of units stays the same. B. fixed number of units decreases. C. variable number of units stays the same. D. fixed number of units increases.