In Figure 5.7, assuming perfect competition, at MR1 there will be 
A. short-run pressure on the price to rise.
B. long-run pressure on the price to rise.
C. short and long-run pressure on the price to rise.
D. no pressure on the price to change.
Answer: C
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In the above figure, the equilibrium real wage rate is
A) $10 per hour. B) $15 per hour. C) $20 per hour. D) none of the above
The actions taken by arbitrageurs in the foreign exchange markets
a. destabilize foreign exchange markets b. are highly risky c. have no effect on exchange rates d. help assure that exchange rates are equalized across all markets e. are the same as those undertaken by speculators
Eric lost his job because a recession caused his employer's sales to fall. This is an example of:
a. involuntary unemployment. b. frictional unemployment. c. structural unemployment. d. cyclical unemployment.
Which of the following is true of government activities under a system of representative democracy?
a. If a majority favors an activity, it must be productive. b. If a majority opposes an activity, it must be counterproductive. c. When voters pay in proportion to benefits received, productive activities undertaken by the government will be favored by an overwhelming majority of voters. d. When voters pay in proportion to benefits received, productive activities will generally be defeated under a majority rule vote.