The imposition of price ceilings on a market often results in
A. an increase in investment in the industry.
B. a persistent surplus in the market.
C. the diversion of income toward black-market suppliers.
D. lower prices being offered on the black market.
Answer: C
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An important source of structural unemployment is
A) recessions. B) people looking for the right job decide to change jobs. C) unemployment insurance benefits. D) seasonal variations in aggregate demand.
Health insurance companies impose deductibles on policies and co-payments on claims
A) to reduce moral hazard problems. B) to increase prices. C) to increase sales. D) to reduces sunk costs.
According to agency theory, a financial crisis results from ________ that disrupts the flow of funds from lender-savers to borrower-spenders
A) an increase in asymmetric information B) a macroeconomic shock C) the existence of asymmetric information D) a decrease in saving
A perfectly competitive firm will hire workers up to the quantity at which the wage rate equals the
A) marginal revenue product of labor. B) marginal factor cost of labor. C) price of the extra output produced. D) average physical product of labor.