Wage and price stickiness
A. creates a surplus or a shortage of real GDP.
B. give rise to a vertical long-run aggregate supply curve.
C. give rise to a vertical short-run aggregate supply curve.
D. prevents the economy from producing its potential level of real GDP.
Ans: D. prevents the economy from producing its potential level of real GDP.
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In the above, as the y variable increases
A) the x variable is constant. B) the x variable increases. C) the x variable decreases. D) the x variable at first increases but then decreases.
The principal-agent problem
A) occurs when managers have more incentive to maximize profits than the stockholders-owners do. B) in financial markets helps to explain why equity is a relatively important source of finance for American business. C) would not arise if the owners of the firm had complete information about the activities of the managers. D) explains why direct finance is more important than indirect finance as a source of business finance.
Salespersons are often a good source of external information in the consumer decisions making process.
a. true b. false
When unions exist in markets
A) firms must have market power in their output markets. B) there no longer is a perfectly competitive labor supply. C) individual workers no longer make labor-leisure trade-off decisions. D) employers have market power in labor markets.