In the classical model,
A. full employment will never be reached.
B. wages will go up but never go down.
C. unemployment will never exist because employers will be willing to pay the wage rate demanded by the workers.
D. unemployment will never exist since workers will be willing to accept lower wages and will then be able to find work.
Answer: D
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Four propane delivery firms have a tacit agreement to charge a service fee of $50 in addition to $5 per gallon of propane. If the firms' cost of propane increases and one of the four firms advertises that it will increase the service fee to $75 and raise the cost of a gallon of propane to $5.50 next month, this is an example of ________.
A) a preannouncement B) price leadership C) a meet-the-competition clause D) a precommitment
Holding supply constant, an increase in demand leads to
A) lower prices and higher quantity supplied. B) lower prices and lower quantity supplied. C) higher prices and higher quantity supplied. D) higher prices and lower quantity supplied.
The short-run aggregate supply curve is
A) downward sloping. B) upward sloping. C) vertical. D) horizontal.
The return to a factor that is in fixed supply is a pure rent.
Answer the following statement true (T) or false (F)