An unemployment rate of zero percent cannot be expected because
A) there are some people who do not want to work.
B) there will always be discouraged workers.
C) some portion of the labor force will always be between jobs.
D) cyclical unemployment will always exist.
Ans: C) some portion of the labor force will always be between jobs.
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Consider the labor market below. 
If a minimum wage of $12 per hour is imposed in this labor market, then:
A. 400 workers will earn $12 an hour. B. total earnings will rise C. worker surplus will fall. D. 200 workers will lose their jobs.
Refer to the table above. For which of the following choices is the marginal total cost the lowest?
A) Choosing factory Close over factory Far B) Choosing factory Far over factory Very Far C) Choosing factory Very Close over factory Close D) Choosing factory Close over factory Very Far
A needed reform in the U.S. income tax system that would reduce the costs of inflation is to
A) go back to taxing nominal wage and salary income. B) start taxing real wage and salary income. C) go back to taxing nominal interest income. D) tax real interest income.
Moral hazard is:
A. when buyers and sellers with the same information about the quality of a good or the riskiness of a situation agree to a somewhat shady deal. B. the tendency for people to behave in a riskier way or provide less effort when they do not face the full consequences of their actions. C. when people engage in behavior that is considered highly desirable by the person who bears the cost of the behavior. D. when buyers and sellers have different information about the quality of a good or the riskiness of a situation.