Workers prefer layoffs to wage reductions during economic downturns because
A) layoffs benefit workers more than the firms.
B) workers try to provide firms with incentives to report true economic conditions.
C) firms will keep workers even during economic downturns to avoid more costs.
D) there is symmetric information.
B
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If a firm accumulates unwanted inventories, then it
A) must hire more workers. B) will increase its production. C) has actual investment equal to its planned investment. D) will decrease its production. E) has actual investment that is less than its planned investment.
Suppose that nuclear power plants are banned. What are examples of the opportunity costs of this decision?
What will be an ideal response?
Which of the following will NOT lead to a rightward shift of the long-run aggregate supply curve?
A. increase in capital B. increase in labor C. increase in labor productivity D. increase in aggregate spending
Refer to the information provided in Table 22.2 below to answer the question(s) that follow. Table 22.2 PointAggregate Income (Y)Aggregate Consumption (C) A 10 14 B 20 23 C 30 25 D 40 26 E 50 34 F 60 39The data in the table was used to estimate the following consumption function: C = 12 + 0.4YRefer to Table 22.2. The error for point E is equal to
A. -2. B. -1. C. +2. D. +4.