Suppose that an anti-smoking campaign in Moscow, Russia, is successful so that Muscovites smoke less and chew gum more. Tobacco companies lay off workers, while chewing gum manufacturers employ more workers. This is an example of
a. structural unemployment created by efficiency wages.
b. structural unemployment created by sectoral shifts.
c. frictional unemployment created by efficiency wages.
d. frictional unemployment created by sectoral shifts.
Ans: d. frictional unemployment created by sectoral shifts.
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The short run Phillips Curve shows there is ________ relationship between the unemployment rate and the rate of inflation.
A. a positive B. a constant C. a negative D. no
Refer to Figure 4-9. The price buyers pay after the tax is
A) $12. B) $8. C) $5. D) $3.
"Because Coke and Pepsi are substitutes, a decrease in the price of Pepsi will cause the demand for Coke to decrease
This initial shift in demand for Coke results in a lower price for Coke; this lower price will cause the demand curve for Coke to shift to the left." Which of the following correctly comments on this statement? A) The statement will be true if consumer tastes for Coke and Pepsi do not change. B) The statement is false because Pepsi is an inferior good; Coke is a normal good. C) The statement is false because one cannot assume that Coke and Pepsi are substitutes for all consumers. D) The statement is false because a change in the price of Coke would not change the demand for Coke.
A firm will shut down permanently if total revenue is not sufficient to pay for total costs in the long run
a. True b. False Indicate whether the statement is true or false