Based on our understanding of the labor market model presented in Chapter 6, we know that an increase in the markup will cause
A) an increase in the equilibrium real wage.
B) a reduction in the equilibrium real wage.
C) a reduction in the natural rate of unemployment.
D) both B and C
B
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Vicky currently produces at point a in the figure above. If Vicky moves from point a to point b to point c, her opportunity cost of a modem ________
A) decreases B) increases C) is zero D) remains the same
Suppose you hear of a great deal on a used car and wonder, "Why is the price so low?" This might be an instance of ________
A) tyranny of collateral B) adverse selection C) the free rider problem D) moral hazard
Platform businesses such as Google and Facebook:
A. are public utilities. B. use data to retain market power. C. do not face competition. D. are highly regulated.
Since 1970, the Fed has usually raised interest rates to combat inflation, even when output was low.
Answer the following statement true (T) or false (F)