Which of the following is NOT a basic assumption of the "Lucas" model?
A) slow adjustment of wages and prices
B) rational expectations
C) imperfect information
D) market-clearing
A
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Dairy price supports have the effect of _____
a. decreasing the value of farmland b. increasing the value of farmland c. destroying farmland d. increasing consumption of dairy products
If the official unemployment rate increases from February to March because of sluggish sales in the automobile industry, then the increase can be blamed on: a. seasonal unemployment. b. cyclical unemployment
c. structural unemployment. d. frictional unemployment. e. underemployment.
Which of the following about costs is always true?
a. When marginal costs are less than average total costs, average total costs will be decreasing. b. When average fixed costs are falling, marginal costs must be less than average fixed costs. c. When average fixed costs are rising, marginal costs must be greater than average total costs. d. When marginal costs are greater than average total costs, average total costs will be decreasing.
Individuals with more experience tend to earn more than individuals with less experience. This is because
A. it is only fair that a more-experienced worker be paid more than a less-experienced worker. B. experience on the job increases an individual's human capital. C. the government requires that more-experienced workers be paid more than less-experienced workers. D. experience is a compensating differential.