Why is there NO persistent unemployment in the classical model?
A. The rate of economic growth is always high enough to allow those who want to work at current wages to find jobs.
B. Unionization creates job security for workers.
C. The wage level adjusts to eliminate unemployment.
D. The interest rate adjusts to eliminate unemployment.
Answer: C
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If the current margin is greater than the desired margin, the firm should
a. Increase production b. Decrease production c. Not change production level d. Production ceases
The supply curve for a monopoly is given by
a. the firm's marginal cost curve above the average variable cost curve. b. the one point on the demand curve that corresponds to the quantity for which price is equal to marginal cost. c. the entire demand curve above the point where price is equal to average cost. d. the monopolist does not have a well-defined supply curve.
Suppose A and B are substitute goods. Other things being equal, the demand curve for A will shift to the right when the price of B goes down
a. True b. False Indicate whether the statement is true or false
CARFAX is a company that compiles and sells histories of used cars. CARFAX reduces the:
A. number of cars exchanged in the used car market. B. information asymmetry in the used car market. C. number of used cars offered for sale in the market. D. cost of used cars in the market.