Suppose policy makers underestimate the natural rate of unemployment. In situations like these, policy makers will likely implement policies that result in
A) more unemployment than necessary.
B) an unemployment rate that is "too high."
C) a higher inflation rate than necessary.
D) a steadily decreasing inflation rate.
E) overly contractionary monetary and fiscal policy.
C
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An economy's production function is Y = A , and the economy's total output in equilibrium is $90 billion. Total capital income in this economy is ________
A) $27 billion B) $30 billion C) $21 billion D) $70 billion E) none of the above
Suppose a start-up company can operate from a traditional office space or from a virtual office in which there is no physical office location and the employees collaborate over internet connections from their individual homes
Shirking is more difficult to monitor under the virtual office plan. How would the efficiency wage and level of employment for the virtual office compare to the traditional office plan? A) Efficiency wage and employment are higher B) Efficiency wage is lower, employment is higher C) Efficiency wage is higher, employment is lower D) Efficiency wage and employment are lower
If the marginal utility of a product exceeds its MC, we would want, on efficiency grounds, to
a. increase production. b. decrease production. c. leave production constant. d. One cannot tell without knowing the price.
Between 1910 and today, the number of farmers in the United States _____________ dramatically as a result of ___________________ in farming in the twentieth century
A) dropped; technological improvements B) rose; technological improvements C) dropped; technological declines D) rose; technological declines