According to the accelerator effect, there is a tendency for investment to decrease when aggregate output decreases, thus accelerating the decline of output.
Answer the following statement true (T) or false (F)
True
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The term compensating wage differential refers to:
a. the bargaining capacity of a monoposonist in the labor market. b. the wage differences that arise from differences in the risk involved in different jobs. c. the criteria on which a firm offers a 401K plan to all its employees or just some employees. d. the wage differences that arise from difference in productivity of the workers in a firm. e. the negotiating power of the trade union.
Relative to explicit price fixing, with implicit price fixing:
A. firms will find it more difficult to figure out why the price leader has set the price that it has. B. the reasons for the price leader's pricing strategy will be more clear and less ambiguous. C. firms face a higher risk of prosecution for antitrust violations. D. consumers will pay higher prices.
As one is beginning to learn economics, one should expect to learn
A. everything one needs to become an economist. B. very little that will be useful in the real world. C. a new way of thinking about the world. D. the gross domestic product of every country in the world.
Which of the following is true about public goods?
A. They are only produced by government agencies. B. They will be over supplied by the private sector. C. They are excludable since those who do not pay for them can be excluded from enjoying them. D. They bestow collective benefits on members of society.