Referring to the graph above, assume that, at first, the labor market is in equilibrium at point 4. Then, demand shifts to pass through point 3, and the real wage adjusts to the new equilibrium
________ is ________ at the new equilibrium, compared to the original equilibrium. A) unemployment; larger
B) unemployment; smaller
C) the labor force; smaller
D) employment; larger
C
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The time it takes to identify and examine the nature and seriousness of an economic problem is the _____
a. activity lag b. decision-making lag c. effectiveness lag d. implementation lag e. recognition lag
Supply-side economists argue that less government spending will
a. result in less economic stabilization b. result in more crowding out c. lower both rates of unemployment and inflation d. lower the interest rate and lower private investment e. lower the interest rate and raise private investment
Faced with a hundred pounds of strawberries, the rational individual will eat:
A. all of the strawberries. B. strawberries until the satisfaction from eating strawberries is maximized. C. strawberries until the satisfaction from the last strawberry is maximized. D. strawberries until the satisfaction from eating the last strawberry begins to fall.
Natural monopolies fail to minimize
A. Marginal revenue. B. Average variable cost. C. Average total cost. D. Marginal cost.