Which of the following occurs when the spending on final goods and services exceeds full-employment GDP?
A. Unemployment.
B. Recessionary gap.
C. Inflationary gap.
D. Inventory accumulation.
Answer: C
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In the market depicted in the above figure, if a single-price monopoly maximizes its profit, which area shows the deadweight loss?
A) area FHIL B) area GHJM C) area IJH D) area LJK
A worker's labor supply depends on, among other things, his ability, his preference for the task, and the opportunity cost of his time
a. True b. False
The supply curve of labor becomes backward bending when
a. higher wages induce people to work more hours b. higher wages induce more people to work c. the opportunity cost of working is lowered d. increases in wages reduce the amount of labor supplied e. new employment opportunities cause the supply curve to shift to the right
If a college enforces a new policy where anyone caught cheating is immediately expelled, the basic postulate of economics suggests that
a. cheating will be completely eliminated. b. fewer students will attempt to cheat. c. the amount of cheating will be unaffected. d. any of the above is possible because student behavior is unpredictable.