Labor is defined as cheap only if its productivity is very low.
Answer the following statement true (T) or false (F)
True
You might also like to view...
A contractionary monetary policy can reduce the inflation rate without causing a rise in unemployment if expectations are formed rationally and monetary policy is
A) combined with expansionary fiscal policy. B) carried out in total secrecy. C) publicly announced and credible. D) combined with contractionary fiscal policy.
The possibility that a borrower will break a promise made to the lender after the loan is made is one form of
A) the moral hazard problem. B) the adverse selection problem. C) outside collateral. D) inside collateral.
________: the area above the market supply curve and below the market equilibrium price
Fill in the blank(s) with correct word
A government wants to reduce electricity consumption by 5%. The price elasticity of demand for electricity is -0.5. The government must ________ the price of electricity by ________.
A. raise; 1.0% B. raise; 0.1% C. lower; 0.5% D. raise; 10.0%