In a frictionless labor market:
A) there is always a shortage of workers.
B) the wage adjusts instantly to clear the market.
C) there is always a surplus of workers.
D) the ongoing wage rate does not change for long periods of time.
B
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How does inclusion of the current revenues and expenditures of the Social Security trust fund into the budget calculation affect the reported budget deficit of the federal government?
a. It increases the reported deficit. b. It reduces the reported deficit. c. It exerts no effect on the reported deficit. d. It increases the deficit during an economic boom but reduces it during a recession.
Which of the following is most likely a topic of discussion in economics?
a. Families must decide whether to spend their money on a new car or a fancy vacation. b. Nations must choose whether to put more of the budget into police and fire protection or into the school system. c. Towns must choose whether to put more of the budget into police and fire protection or into national defense. d. Nations must decide whether to devote more funds to national defense or to police and fire protection.
Of the following balance of payments measures, which one shows bestwhether there are speculative financial capital flows from the nation?
a. Balance on goods & services. b. Balance on goods, services, and net income. c. Overall balance. d. Financial account. e. Capital account.
Consider an unregulated monopoly in Figure 13.2. Suppose that a second firm enters the market. As a result, the demand curve facing each firm lies entirely below the long-run average cost curve. Because having two firms in the industry makes both firms unprofitable, then the industry is classified as:
A. a natural monopoly. B. a duopoly. C. a monopolistic competitor. D. a pure competitor.