If a monopsonist discovers that the MLC is $6 and the MRP is $3, she should
a. hire more workers and pay them more
b. hire fewer workers and pay them more
c. hire more workers and pay them less
d. hire fewer workers and pay them less
e. keep hiring the same number of workers at the current wage
D
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As the workforce ages,
A) structural and frictional unemployment increase. B) cyclical unemployment declines. C) cyclical unemployment increases. D) the natural rate of unemployment declines.
Inflation interferes with the functions of money. Which of the three functions is impaired, even when the inflation rate is quite low? Considering higher rates of inflation, which function is affected next?
Which function of money is the last to suffer substantial damage from inflation?
The following is NOT an example of a potential monitoring solution to moral hazard
a. blocking social network sites on company computers b. closed circuit TVs throughout a warehouse c. GPS tracking devices in repair trucks d. requiring physicians to be 'board certified'
The government might increase its spending to end a recession because:
A. allowing the short-run aggregate supply to adjust since back to the long-run can take a long time. B. the economy experiences lower prices at the long-run equilibrium. C. the economy enjoys a higher level of output in the long run. D. None of these justify why the government might change its spending to end a recession.