We don't typically see wages ________ in response to an economic upswing because ________.
A. rise; they are "sticky," and are slow to respond to shifts in the economy
B. rise; they cannot rise above the equilibrium in any circumstance
C. fall; they cannot fall below where they were previously set due to inflation
D. fall; they are "sticky," and are slow to respond to shifts in the economy
Answer: A
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Suppose that, instead of taking this test, you could either have worked and earned income or partied and had a pleasurable time. Your opportunity cost of taking the test is the
A) forgone work. B) forgone party. C) forgone working and partying. D) forgone working or partying, depending on which was your next best choice. E) test because you are taking it.
When Ronald takes another economics class, other people in society benefit. The benefit to these other people is called the marginal ________ benefit of the class
A) social B) private C) external D) Coasian E) extra
The use of an absorption instrument allows a government to
A) increase or decrease national absorption. B) change the balance between imports and exports. C) alter the balance of payments with a specific country. D) reduce the influence of domestic absorption on exchange rates.
A monopolistically competitive firm chooses the quantity to produce where
a. price equals marginal cost. b. demand equals marginal cost. c. marginal revenue equals marginal cost. d. Both a and c are correct.