In the view of the classical school, unemployment:
a. is a permanent condition.
b. disappears when everyone who is willing to work at the equilibrium wage finds employment.
c. exists because people do not interfere with the competitive process.
d. is only temporary because all wages and prices are rigid.
e. is necessary and good for the economy.
b
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The marginal product of labor (measured in units of output) for Relient Corp is given by MPN = A(200 - N)
where A measures productivity and N is the number of labor hours used in production. Suppose the price of output is $3 per unit and A = 2.0. What will be the demand for labor if the nominal wage is $30? A) 170 B) 185 C) 190 D) 195
Which of the following is not a benefit of the unitary form (Uform) of an organization?
A. Opportunity costs of the time of senior management B. Improved coordination among functional specialists C. Higher level of functional expertise D. Well-defined promotion path
Which of the following would cause an upward shift in the consumption function?
A. A stock market crash B. An increase in the price level C. A decrease in disposable income D. A decrease in the price level
Which of the following is a noncash transfer?
A. A payment to a divorced mother under TANF. B. SNAP (food stamps). C. A social security payment to a retiree. D. Unemployment compensation benefits.