The short-run Phillips curve shifts from SRPC0 to SRPC1 as a result of
A) a fall in the expected inflation rate.
B) an increase in the natural unemployment rate.
C) a rise in the expected inflation rate.
D) a decrease in the natural unemployment rate.
E) None of the above answers is correct.
A
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If a job pays a wage of $50 per hour, but has a non-wage cost valued at $20 per hour, the net benefit of taking the job equals:
A) $2.5 per hour. B) $20 per hour. C) $30 per hour. D) $70 per hour.
Does an upward-sloping labor-supply curve mean that people respond to a decrease in the wage by enjoying more leisure or less leisure?
How much is the multiplier?
Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss
As shown in Exhibit 3A-2, if the market price falls from P2 to P3, then:
A. total surplus increases. B. deadweight loss decreases. C. overproduction increases. D. underproduction decreases.