The horizontal dotted line is
A. a price ceiling.
B. a price floor.
C. the price at which quantity supplied equals quantity demanded.
D. the equilibrium price for this graph.
A. a price ceiling.
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Evidence from research studies by economists
a. shows that increased unemployment benefits decrease the job search efforts of the unemployed. b. shows that increased unemployment benefits have virtually no effect on the job search efforts of the unemployed. c. shows that increased unemployment benefits increase the job search efforts of the unemployed. d. is conflicting on what increased unemployment benefits do to the job search efforts of the unemployed.
Lorna's Lumberyard is a monopsony. Lorna estimates that at a wage of $10, 100 workers would be willing to work for her. Similarly, at a wage of $12, 200 workers would be willing to work. Her marginal factor cost is:
A. $10. B. $14. C. $120. D. $140.
The Federal Reserve econometric model emphasizes the impact of the wealth effect on
A) consumption. B) government spending. C) business investment. D) exports.
All of the following is consistent with the classical theory of employment EXCEPT
A. The interest rate will equalize savings and investment. B. Everything produced will necessarily be purchased. C. Saving and investing are done by different people for different reasons. D. Wages and prices are flexible downwards.