In the Keynesian model, which curve is vertical?
A. SRAS
B. NS
C. AD
D. LRAS
Answer: D
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Why is a monopsony a negative situation for a worker?
a. Wages are lower than in a competitive labor market. b. Their workplace is not in a convenient location. c. Increased hiring causes workplace overcrowding. d. They have better options for employment nearby.
If firms believe that a downturn in sales and output is ________, the most likely course of action would be to reassign their workers to different jobs.
A. permanent B. long-lasting C. unlikely D. temporary
The effect on short-run equilibrium output of a one-unit increase in expenditure is called:
A. the income-expenditure multiplier. B. Say's law. C. the marginal propensity to consume. D. average labor productivity.
When road construction crews work at less than 100 percent of effort during their work days in order to create overtime work for themselves, they are creating what economists describe as a
a. moral hazard problem b. work dependency problem c. principal-agent problem d. efficiency wage problem e. employment-management problem