A car dealership union negotiates a contract that dramatically increases all salesmen's salaries. If one of the salesman is thinking of changing careers to be a hardware salesman, his opportunity cost
a. would not be affected
b. of becoming a hardware salesman would decrease
c. of becoming a hardware salesman would increase
d. none of the above
c
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Which country was least supportive of expansionary policy by the European Central Bank during the Financial Crisis of 2007-2009?
A) Spain B) Portugal C) Greece D) Germany
Investment spending is countercyclical
Indicate whether the statement is true or false
If the market for a product is narrowly defined, then there are likely to be many substitutes for the product and the demand for the product is relatively elastic
Indicate whether the statement is true or false
Some economists argue that Okun's Law overstates the cost of cyclical unemployment because
A) the cost of retraining workers must be offset against the loss in output that occurs when workers are unemployed. B) if efficiency wages prevail, and workers are paid their real wage, already employed workers will reduce their effort, reducing output. C) it ignores the fact that leisure increases during a recession. D) it ignores the loss of government revenue and additional government expenditures that occur when unemployment rises.