Downward wage rigidity:
A) leads to frictionless labor markets.
B) causes the wage to be above the market clearing wage.
C) helps lower unemployment.
D) is common only in industries with strong labor unions.
B
You might also like to view...
What is the relationship between the balance of trade and the current account balance?
What will be an ideal response?
The process of adjustment to a new long-run equilibrium in a perfectly competitive industry is not complete if
A. other firms want to enter the industry. B. all firms are at the minimum average cost. C. all firms receive zero economic profit. D. no firms want to exit the industry.
If bread costs $1 per pound and meat costs $4 per pound, a consumer whose marginal utility of meat equals 80 utils per pound is maximizing utility only if the marginal utility per pound of bread equals
a. 4 utils b. 5 utils c. 10 utils d. 20 utils e. 80 utils
Transfer payments are
a. payments made to individuals who are employed by the government. b. payments made to individuals who provide goods and services to the government. c. transfers of income from taxpayers to recipients who do not provide current goods and services for the payments. d. omitted from the government expenditure figures.