If, as a result of imperfect information, firms set their wage rates ________ the market clearing wage rate, there will be a surplus of workers.
A. below
B. at
C. above
D. above or below
Answer: C
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In the United States and other high-income countries, capital's share and labor's share of total income have been about ________, respectively
A) 1/2 and 1/2 B) 4/5 and 1/5 C) 1/3 and 2/3 D) 3/4 and 1/4
Which of the following is TRUE about firms organized along functional lines?
a. Workers develop functional expertise b. Workers can easily share information within their division c. They foster the exploitation of economies of scale d. All of the above
Small, developing countries must first become self-sufficient before they can benefit from international trade
a. True b. False Indicate whether the statement is true or false
If the demand-side effects of supply-side tax cuts are greater than the supply-side effects, then we can expect the result to be a(n)
a. decrease in output and prices. b. decrease in output and an increase in prices. c. increase in output and prices. d. increase in output and a decrease in prices.