Why might firms pay wages that are above the equilibrium wage in a market?
A) to reduce the unemployment rate B) to encourage workers to form labor unions
C) to increase the productivity of their workers D) to reduce profit
C
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When calculating GDP, underground economic activity is
A) the production of goods and services in the home. B) that portion of the time when we are enjoying leisure activities and not producing marketable goods. C) the part of the economy purposely hidden. D) an aspect of the quality of life, such as health and life expectancy.
Answer the following statements true (T) or false (F)
1. A major advantage of a partnership is the legal separation of personal and partnership assets. 2. In a corporate form of business enterprise, both profits and dividends are subject to income tax. 3. In determining what and how much to produce, the market economy works in a democratic manner based on dollar votes. 4. Government intervention in market economies was and is necessary to remedy the inequities that evolved from economic liberalism.
Refer to the game between James and Theodore depicted in Figure 12.2. Which of the following is true?
A. If James chooses Up, Theodore's best response is to choose Left.
B. If James chooses Down, Theodore's best response is to choose Left.
C. If Theodore chooses Left, James's best response is to choose Down.
D. If Theodore chooses Right, James's best response is to choose Up.
If the price of inputs rises and consumer expectations about future economic activity worsens:
a. Aggregate demand and aggregate supply rise. b. Aggregate demand and aggregate supply fall. c. Neither aggregate demand nor aggregate supply change. d. Aggregate demand rises, and aggregate supply falls. e. None of the above.