The long-run aggregate supply curve is upward sloping (rather than vertical) in the short-run due to
A. sticky wages
B. sticky employment
C. sticky interest rates
D. sticky output
Ans: A. sticky wages
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A binding minimum wage raises the incomes of some workers, but it lowers the incomes of workers who cannot find jobs
a. True b. False Indicate whether the statement is true or false
When a price floor is imposed above the equilibrium price of a commodity,
a. quantity demanded will be greater than quantity supplied for the good. b. the quantity demanded by consumers will be greater than at the equilibrium price. c. a shortage of the good will develop. d. a surplus of the good will develop.
Which one of these groups is counted among the unemployed?
A. Discouraged workers B. People collecting unemployment benefits C. People working part time D. People out of the labor force
Refer to the above figure. What can we say about economic rent?
A. Economic rent equals the area IJK0. B. Economic rent equals the area HJI. C. Economic rent equals the area HJK0. D. There is no economic rent represented in the figure.