When the government sets a price floor which is above the equilibrium price
A) a surplus will develop.
B) a shortage will develop.
C) the equilibrium price will be maintained.
D) a price ceiling will follow.
A
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A decrease in investment leads to ________ in aggregate demand and ________ in real GDP
A) no change; a decrease B) a decrease; an increase C) an increase; an increase D) a decrease; a decrease E) an increase; a decrease
Discouraged workers are included in the calculation of the
i. unemployment rate. ii. labor force participation rate. iii. working-age population. A) i only B) ii only C) i and ii D) iii only E) ii and iii
The "big tradeoff" refers to the point that governmental redistribution of income causes
A) less efficiency because it weakens incentives to work. B) less efficiency because it strengthens incentives to work. C) more efficiency because it weakens incentives to work. D) more efficiency because it strengthens incentives to work.
Strikebreakers
A) can reduce the bargaining power of a union. B) can strengthen the bargaining power of a union. C) make a union negotiation invalid. D) make a strike permanent.