What type of economic system is commonly described as being controlled by an "invisible hand"?
A. a traditional economy
B. a command economy
C. a market economy
D. a communist economy
Answer: C
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The "no shirking constraint" (NSC) curve is
A) downward-sloping to reflect the fact that at higher wages, firms will monitor workers more to see whether they are shirking. B) downward-sloping to reflect the fact that shirking tends to be higher in lower-paying industries. C) upward-sloping because at high levels of unemployment, workers will refrain from slacking without much other incentive. D) upward-sloping because at high levels of employment, many "slacking" individuals have been hired. E) vertical because the constraint represents the absolute amount of time a firm will tolerate workers' slacking without laying them off.
Which of the following conditions would result in the short run marginal cost curve not correctly reflecting the supply behavior of a profit maximizing firm?
a. The firm is a price taker. b. Price exceeds average total cost. c. The elasticity of demand facing the firm is ?3. d. the firm can vary several inputs in the short run.
Conglomerate mergers increase concentration in an industry
Indicate whether the statement is true or false
The federal government uses the revenue from the FICA (Federal Insurance Contribution Act) tax to pay for
a. unemployment compensation. b. the salaries of members of Congress. c. Social Security and Medicare. d. housing subsidies for low-income people.