One complication that tends to prolong recessionary gaps is that wages
a. are fixed by unions, which represent nearly all workers in the United States.
b. tend to rise rapidly.
c. rarely fall.
d. tend to move in the opposite direction from prices.
c
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Which of the following occurs when there was a shortage of supply in a centrally planned economy?
a. Central planners reduced the amount supplied to each sector b. Shoppers waited in long lines at retail stores c. Store shelves were empty d. Shop operators expected "tips" or bribes for supplying scarce consumer goods e. All of the answers are correct
In a market characterized by a single seller and many buyers, a seller's investment to reduce transaction costs can lead to which of the following situations?
a. It can reduce producer surplus in the long run. b. It can raise the price paid by customers and still make them better off. c. It can decrease the brand value of the product. d. It can lower the quality of the product in the long run.
Because a monopolist must cut its price to increase its sales by one unit,
a. MR > P at every output level. b. MC > MR at every output level. c. P > MR at every output level. d. MC > P at every output level.
Trade causes wages in countries with high productivity to increase and wages in countries with low productivity to decrease.
Answer the following statement(s) true (T) or false (F)