If the real wage is below the equilibrium real wage, there would be a ________ of workers and the real wage would ________
A) surplus; decline
B) surplus; rise
C) shortage; decline
D) shortage; rise
D
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The emerging market economies are
A) the nations with the highest standards of living.
B) most of the nations of Western Europe.
C) in transition from state-owned production to free markets.
D) the largest grouping including the nations of China and India.
E) the nations that are currently agricultural in nature.
Keynesian economists believe that in the short run,
A. money neutrality exists and prices do not adjust rapidly. B. money neutrality exists and prices adjust rapidly. C. money neutrality does not exist and prices adjust rapidly. D. money neutrality does not exist and prices do not adjust rapidly.
Which type of unemployment is most likely to help the economy become more efficient?
a. cyclical b. structural c. seasonal d. frictional e. underemployment
A production point that lies outside the Production Possibilities Curve (PPC)
A) denotes inefficiency. B) indicates unemployment. C) is currently not attainable. D) can never be reached, even in future periods.