Deadweight loss:
A. occurs in markets that are efficient.
B. occurs when markets are in equilibrium.
C. is the loss in surplus from a market not in equilibrium.
D. is additional surplus from an additional market transaction.
C. is the loss in surplus from a market not in equilibrium.
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Credential inflation results from
(a) a combination of cost-push inflation and demand-pull inflation. (b) rigidities in the industrial sector. (c) the need to select from among qualified applicants in the modern sector. (d) all of the above.
Suppose that there is an increase in the demand for money. What is the appropriate monetary policy response in the New Keynesian sticky price model?
A) an increase in the interest rate target B) no change in the interest rate target C) a decrease in the interest rate target D) an increase in government spending
The Taft-Hartley Act outlawed all of the following practices EXCEPT
A) secondary boycotts. B) union shops. C) closed shops. D) sympathy strikes.
A lumberjack loses his job because timber cutting restrictions were imposed by the EPA to protect the spotted owl habitat. This lumberjack would be
A) frictionally unemployed. B) cyclically unemployed. C) structurally unemployed. D) seasonally unemployed.