Which type of goods is most adversely affected by recessions?
A. Goods for which the income elasticity coefficient is relatively low or negative.
B. Goods for which the income elasticity coefficient is relatively high and positive.
C. Goods for which the cross elasticity coefficient is positive.
D. Goods for which the cross elasticity coefficient is negative.
Answer: B
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The long-run aggregate supply curve shifts right at the same time as
A) the Laffer curve shifts upward. B) the production possibilities curve shifts inward. C) the production possibilities curve shifts outward. D) the inflation rate increases.
How is the wage to be paid to a worker determined by a profit-maximizing firm? If a marginal worker creates 8 units of a product in a month that is sold for $5 per unit, how much should be the maximum wage that should be paid to him?
What will be an ideal response?
Which of the following about unemployment is true?
a. The unemployment rates of the major European economies have been lower than that of the United States during the last decade. b. Compared to the U.S., European labor markets are characterized by less extensive regulation and less generous unemployment benefits. c. High unemployment rates over lengthy time periods are indicative of structural factors that are adversely affecting the natural rate of unemployment. d. The natural rate of unemployment decreases when youthful workers expand as a proportion of the workforce.
If the government removes a binding price floor from a market, then the price paid by buyers will
a. increase, and the quantity sold in the market will increase. b. increase, and the quantity sold in the market will decrease. c. decrease, and the quantity sold in the market will increase. d. decrease, and the quantity sold in the market will decrease.