Some economists argue that Okun's Law overstates the cost of cyclical unemployment because
A) the cost of retraining workers must be offset against the loss in output that occurs when workers are unemployed.
B) if efficiency wages prevail, and workers are paid their real wage, already employed workers will reduce their effort, reducing output.
C) it ignores the fact that leisure increases during a recession.
D) it ignores the loss of government revenue and additional government expenditures that occur when unemployment rises.
C
You might also like to view...
Consumer surplus is the value of a good minus the cost of producing it, summed over the quantity bought
Indicate whether the statement is true or false
Suppose that at a price of $55, 100 units were sold while at a price of $33, 153 units were sold. Without calculating the price elasticity value, can you determine whether demand is elastic, unit elastic, or inelastic? Explain your answer
What will be an ideal response?
The market supply curve of a particular product indicates the total quantities
a. that are actually sold during a given time period b. that buyers are willing to purchase at alternative prices c. that sellers are willing and able to offer at alternative prices d. that sellers are willing to offer for sale e. of complements offered for sale
Research seems to suggest that corporate culture
A) is unrelated to stock performance. B) is closely related to stock performance. C) helps determine the cost of capital. D) is easily transferable across organizations.