Labor markets are different from most other markets because labor demand is
a. unresponsive to changes in wages.
b. unresponsive to changes in the final prices of the products produced by the labor.
c. a derived demand.
d. very responsive to labor supply.
c
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High expected inflation leads to ________ increases in wages and costs and to ________ actual inflation.
A. small; high B. large; low C. large; high D. small; low
The U.S. economy has seen a faster increase in productivity since the mid-1990s as compared to the economies of many Western European countries. Which of the following explains this?
A) The United States has a higher rate of job mobility than do many Western European countries. B) U.S. unions impose stricter work rules as compared to unions in Western European countries. C) U.S. government regulations impose stricter work rules as compared to government regulations in Western Europe. D) U.S. workers can obtain unemployment insurance for a longer period of time as compared to workers in most Western European countries.
A large factory pours its toxic wastewater into a nearby river, and as a result, the residents of a downstream community experience high rates of illness and birth defects. The economic problem illustrated by this example is
a. marginal thinking. b. comparative advantage. c. repealing the laws of supply and demand. d. externalities. e. productivity growth.
One of the reasons why the Phillips curve is no longer viewed as a "menu" of possible choices available to policy makers is that
a. in the 1970s and 1980s there was no inflation at all. b. analysis indicates there was no such "menu" in the 1960s. c. in the 1970s and 1980s much inflation came from the supply side. d. economic theory is unable to explain the curve and, therefore, it has been rejected.