A critical assumption in the classical model is that
a. markets are perfectly competitive in the short run
b. markets clear in the long run
c. markets clear in the short run
d. markets are perfectly competitive in the long run
e. all variables are expressed in nominal terms
B
You might also like to view...
What would happen in the market for knee replacement surgery if insurance companies started to cover a smaller portion of the cost of the surgery?
A) Supply will decrease, but this will not shift the demand curve. B) Demand will decrease and supply will increase. C) Demand and supply will both decrease. D) Demand will decrease, but this will not shift the supply curve.
Assuming that people follow enlightened self-interest allows behavioral economists to create a single clear-cut model that can be applied across many different contexts.
Answer the following statement true (T) or false (F)
All of the following are possible explanations for the fact that on average women earn lower wages than men in the United States except:
A. women are more productive than men on average. B. women enter and leave the labor force more frequently than men, causing them on average to have less experience and a lower productivity than men. C. women choose to work in low-wage industries. D. women are discriminated against in labor markets.
The estimated incremental benefits (in thousands of dollars) associated with this new policy are
A collaborative federal and state program has been proposed in response to acid rain damagein Newport Bay, Maryland. To estimate the incremental benefits of the program, you use thetravel cost methodbasedupon the following pre- and post-policy recreational demand functions: Pre-policy: P = 62 – 0.02V1 Post-policy: P = 80 – 0.02V2, where V is the number of visitors (in thousands) and P is the admission fee. Assume the admission fee is set at $20 per visitor. a. 2,100 b. 44,100 c. 90,000 d. 45,900