Deflation means a decrease in:
a. homes, autos, and basic resources.
b. the prices of all products in the economy.
c. the general level of prices in the economy.
d. the rate of inflation.
c
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One way to overcome the problem of adverse selection in labor markets is to
a. use signaling and screening b. advertise job openings widely c. contract out the hiring function d. pay above average wages e. pay below average wages
At the local park there is a playground for children to use. While anyone is allowed to use the playground, it is often very busy, reducing the enjoyment of many of the children who use it. The playground is a
a. private good. b. club good. c. common resource. d. public good.
Which one of the following statements is NOT correct?
A) Unemployment can occur even when an economy is growing. B) The line between frictional and structural unemployment is sometimes hard to draw. C) The natural rate of unemployment is estimated to be between 5 percent and 6.5 percent in the U.S. D) The term "full employment" means that 100 percent of the labor force is employed.
When a firm's marginal productivity declines as output increases, then the firm is experiencing
a. Diminishing returns to scale b. Constant returns to scale c. Increasing returns to scale d. Increasing marginal product