We have drawn the SAS and SP curves as straight lines for convenience. More realistically, rising output ________ the structural unemployment problem and the effect of this on wages causes those curves to ________ in slope
A) aggravates, increase
B) aggravates, decrease
C) alleviates, increase
D) alleviates, decrease
A
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When the benefit of another hour of work is greater than the opportunity cost, we would expect the worker to work:
A. another hour. B. exactly that amount. C. an hour less. D. Cannot be determined without more information.
A bubble happens when:
A. asset prices rise for a long time, even during a recession. B. asset prices rise higher and faster than can be explained by the fundamentals. C. asset prices rise faster than can be tracked with traditional statistical tools. D. asset prices rise higher than experts have predicted they would.
The identification problem in using regression analysis to estimate a demand curve emerges when
A. the demand for the product has been relatively stable over time. B. factors affecting the demand for the product are highly correlated. C. the supply of the product has been relatively unstable over time. D. the demand for the product has not been stable over time.
Producer surplus
A) increases if market price rises and the supply curve does not shift. B) decreases if market price rises and the supply curve does not shift. C) is equal to the maximum price consumers are willing to pay. D) is the same as the marginal cost. E) always must equal consumer surplus.