The "no shirking constraint" (NSC) curve is
A) downward-sloping to reflect the fact that at higher wages, firms will monitor workers more to see whether they are shirking.
B) downward-sloping to reflect the fact that shirking tends to be higher in lower-paying industries.
C) upward-sloping because at high levels of unemployment, workers will refrain from slacking without much other incentive.
D) upward-sloping because at high levels of employment, many "slacking" individuals have been hired.
E) vertical because the constraint represents the absolute amount of time a firm will tolerate workers' slacking without laying them off.
C
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In general, a fine on buying a product leads to the
A) supply curve shifting rightward. B) supply curve shifting leftward. C) demand curve shifting rightward. D) demand curve shifting leftward.
The perfectly competitive firm's demand curve has
A) a negative slope. B) a positive slope. C) an undefined slope. D) a slope of 0.
All of the following are examples of goods for which external costs commonly exist EXCEPT
A) cigarettes. B) automobiles. C) vaccinations. D) oil transportation.
The Federal Reserve Bank can ____________ and the government can ___________ to stimulate aggregate demand in the economy.
A. lower interest rates; increase spending B. increase interest rates; decrease spending C. increase interest rates; increase spending D. lower interest rates; decrease spending