If labor markets are competitive, wages in those markets are determined by
A. supply only.
B. the interaction of supply and demand.
C. neither supply nor demand.
D. demand only.
Answer: B
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Industries often lobby against the removal of regulations because
a. the regulations often enforce a de facto cartel agreement. b. their customers would be made worse off without government-proscribed standards. c. the largest firms could then dominate the industry. d. deregulation would cause higher entry prices for new firms.
According to the Phillips curve
A) there is a direct relationship between price-level changes and the level of unemployment rate. B) the unemployment rate is not affected by changes in the price level. C) there is an inverse relationship between price-level changes and the unemployment rate. D) price-level changes are not affected by changes in the unemployment rate.
Firms choose to price discriminate
a. To earn higher profits b. To sell goods to consumers who otherwise would not have purchased c. Both a and b d. None of the above
A positive temporary supply side shock will:
A. increase the level of potential output in the long run. B. decrease the price level in the long run. C. increase the price level in the long run. D. have no effect in the long run.