A decrease in the price of a good makes it more difficult for producers to ______.
a. discipline workers that produce the good
b. cover the cost of producing the good
c. find the materials needed to produce the good
d. lobby for producing more goods
b. cover the cost of producing the good
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Frictional unemployment is:
A. short-term unemployment that is associated with the process of matching workers with jobs. B. the extra unemployment that occurs during periods of recession. C. the additional unemployment not captured in official statistics resulting from discouraged workers and involuntary part-time workers. D. the unemployment that results when people retire or leave the labor force.
The aggregate expenditure (AE) curve
A) includes expenditures by domestic residents only. B) does not include expenditures on either imports or exports. C) includes expenditures on foreign as well as domestic goods. D) includes all expenditures on domestic goods. E) adds expenditures on imports because they are consumed in the nation and subtracts expenditures on exports because they are consumed abroad.
Firms are not allowed to ask certain questions during job interviews, including marital status or how many children you have. Why is this the case?
A) People with children are more productive, thus it is unfair if the firm knows this information. B) Firms might use the answers to these questions as a means of statistical discrimination. C) People with children are less productive, thus the firm has no right to this information. D) Such questions violate the privacy clause of the U.S. Constitution.
A tax on productive activity tends to
a. increase formal market activity because it decreases prices b. decrease formal market activity because it increases work incentives c. decrease formal market activity because it lowers the return on such activity d. decrease activity in the underground economy because people are afraid of being connected with tax fraud e. increase activity in the underground economy because people are afraid of being connected with tax fraud