Which of the following is not a cause of frictional unemployment?
a. the destruction of manufacturing jobs
b. a worker leaving a job to find one with better benefits
c. minimum-wage laws
d. unemployment insurance
c
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The sustainable flow of purchasing power available to an individual is equal to _____
a. the Fisher definition of income. b. the Haig-Simons definition of income c. consumption d. investment
A good salesperson can sell $500,000 worth of goods, while a poor one can sell only $100,000 worth of goods. Job applicants know if they are good or bad, but the firm does not
A firm will offer job applicants a choice between a fixed salary of $10,000 or a 10% commission. Assuming risk-neutral salespersons and no opportunistic behavior, can the firm determine a prospective good salesperson from a poor one? A) Yes, because a poor salesperson will always choose the fixed salary. B) Yes, because a good salesperson will always choose the fixed salary. C) No, because a poor salesperson is indifferent between the two contracts. D) No, because a good salesperson is indifferent between the two contracts.
Which of the following is most likely to shift the demand curve for electricity to the left?
a. consumers becoming more energy conscious. b. an increase in income. c. a decrease in the price of electricity. d. an increase in the price of natural gas, a substitute source of energy.
Assume that taxes depend on income and the MPC is 0.6 and t is 0.3. An increase in taxes of $10 billion will decrease equilibrium income by
A. $10.3 billion. B. $17.2 billion. C. $20.0 billion. D. $22.4 billion.