If the wage rate in the labor market is $12 and more previously unemployed people exited the labor force, which of the following statements is correct?
A. If wages are flexible, the unemployment rate increases.
B. If wages are flexible, then wages will decrease.
C. If wages are sticky, the unemployment rate decreases.
D. If wages are sticky, the unemployment rate stays the same.
Answer: C
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Answer the following statement(s) true (T) or false (F)
1. An outcome that is Pareto optimal is preferred by both players to all other possible outcomes. 2. A Nash equilibrium need not be Pareto optimal, and a Pareto-optimal outcome need not be a Nash equilibrium. 3. In the Prisoners' Dilemma game, the only outcome that is not Pareto optimal is also the game's only Nash equilibrium. 4. When a game is played sequentially, the first player will have an advantage over the second player. 5. A Cournot equilibrium arises when one player announces his strategy before the other.
A town wants to build a new bridge. Construction firms will submit sealed bids
The town will award the contract to the firm that submits the lowest bid and will pay the firm the amount of the second lowest bid (that is, the town will conduct a second-price procurement auction). So, for example, if Firm A bids $8 million, Firm B bids $9 million, and Firm C bids $10 million then the city will award the contract to Firm A (it submitted the lowest bid) and pay Firm A $9 million (the amount of the second lowest bid). Suppose your firm is willing to build the bridge for a minimum of $9 million. a. Show that bidding $9 million is a better strategy than bidding some amount below $9 million— say, $7 million. b. Show that bidding $9 million is a better strategy than bidding some amount above $9 million—say, $11 million.
The estimated regression equation is Y = 10 + 2.5X, if X =0 than the predicted value of Y is equal to:
A) 12.5 B) 10 C) 2.5 D) 7.5
Which of the following is a TRUE statement relative to retained earnings and investment?
A. Lower interest rates stimulate borrowing for investment, but have no effect on the use of retained earnings for investment spending. B. Lower interest rates stimulate borrowing for investment, but discourage the use of retained earnings for investment. C. Lower interest rates have no effect on investment spending at all because investment spending is autonomous. D. Lower interest rates reduce the opportunity cost of retained earnings, stimulating the use of these funds in investment.