If, as a result of imperfect information, firms set their wage rates above the market clearing wage rate
A. there will be a shortage of workers.
B. unemployment decreases.
C. there will be equilibrium in the labor market.
D. there will be a surplus of workers.
Answer: D
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If the economy is growing 3% a year and the government increases the ratio of interest on the national debt to GDP, we may conclude that
A) the output ratio will fall. B) additional interest payments exceed 3% of GDP. C) tax revenues will fall. D) the Laffer curve will be inoperable.
The equation of exchange is?
a. M x V = P x Y b. M x P = V x Y c. M x Y = V x P d. none of the above represent the equation of exchange
Cutthroat competition is on the opposite end of the competitive spectrum from
A. covert collusion. B. price leadership. C. open collusion. D. cartels.
Suppose we observe that a firm's total revenue doesn't change when price and quantity change by the same percentage. Which of the following is a possible value of its price elasticity of demand?
A. 0 B. 0.5 C. 1 D. 2