If the labor supply curve is vertical, an adverse supply shock causes ________ in employment and ________ in the real wage
A) no change, a decrease
B) a decrease, a decrease
C) a decrease, no change
D) a decrease, an increase
E) an increase, an increase
A
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A budget-constrained public enterprise may behave quite differently when entry is barred than it would when new entry is allowed
Indicate whether the statement is true or false
The circular flow diagram includes the following players:
a. government, firms, financial markets, goods markets b. factor markets, goods markets, financial markets, firms c. households, firms, government, rest of the world d. households, factor markets, goods markets, firms
An aggregate supply curve represents the relationship between the:
A. price level and the buying of real domestic output. B. price level that producers are willing to accept and the price level buyers are willing to pay. C. real domestic output bought and the real domestic output sold. D. price level and the production of real domestic output.
The mid-point method of calculating elasticity is typically used because:
A. it is universally understood by all economists. B. it is a consistent way to estimate the elasticity of demand between two points on a demand curve, regardless of the direction of the movement. C. it is easier to calculate. D. the negative sign can then be ignored.