In the classical model, a basic theoretical feature of self-regulating markets was that
a. unsold inventory and labor unemployment would cause prices and wages to increase.
b. lower wages and prices would eliminate unemployment and unsold inventory.
c. unsold inventory would never occur.
d. an increase in planned saving would cause an increase in the interest rate and a decrease in investment.
b. lower wages and prices would eliminate unemployment and unsold inventory.
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Figure 4.3 illustrates the demand for tacos. An increase in price of tacos would bring about a movement from
A) point a to point c. B) point c to point a. C) D2 to D0. D) D0 to D1.
In a country with a working-age population of 30 million, 18 million are employed, 2 million are unemployed and 2 million of the employed are working part-time, half of whom wish to work full-time. The labour force is
A) 18 million. B) 20 million. C) 22 million D) 30 million. E) 16 million.
If two variables move in opposite directions, they are said to be negatively correlated.
Answer the following statement true (T) or false (F)
In long?run equilibrium for a monopolistically competitive industry, ________ firms earn ________ economic profits.
A. no; zero B. some; negative C. no; positive or negative D. some; positive