Rent-seeking behavior can sometimes cause
A. a decrease in government spending.
B. a sharp increase in economic activity.
C. corruption in public officials.
D. housing rental prices to increase.
Answer: C
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Which of the following is FALSE regarding bilateral monopoly?
A. The price outcome is easily determined. B. Bilateral monopoly is defined as a market structure in which a single buyer faces a single seller. C. An example of bilateral monopoly is a state education employer facing a single teachers' union in the labor market. D. Bilateral monopoly is a market structure consisting of a monopolist and a monopsonist.
In the long run, a decrease in aggregate demand will lead to a(n): a. decrease in price and output levels
b. increase in price and output levels. c. increase in the price level and a decrease in output. d. decrease in the price level and an increase in output. e. decrease in the price level and no change in output.
When arbitrage occurs across countries with a flexible exchange rate and when the bonds in each country are identical and there are no barriers to capital flows then the:
A. expected return on the bonds will be identical. B. inflation rates in each country will be identical. C. prices of the bonds will be identical. D. interest rates on the bonds will be identical.
Other things the same, an increase in wages above their equilibrium level
a. increases frictional unemployment but leaves the natural rate of unemployment unchanged. b. increases frictional unemployment and increases the natural rate of unemployment. c. increases structural unemployment but leaves the natural rate of unemployment unchanged. d. increases structural unemployment and increases the natural rate of unemployment.