Which of the following statements about featherbedding is correct?
A. It could increase production costs, resulting in higher prices for products.
B. The quantity of labor demanded by firms could actually decrease.
C. It could lead to a lower wage and smaller employment in the long run.
D. All of these
Answer: D
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Suppose Bob works for Mary as a proofreader. Mary and Bob fall deeply in love, marry, and have eight children. Bob stops working for Mary in order to care for the children. What will be the effect on GDP?
A) GDP will increase. B) GDP will decrease. C) GDP will not change. D) GDP may increase or may decrease depending on inflation.
If a firm in a competitive industry is making no profit but still producing, it must be the case that
a. MC = MR > ATC b. MC = MR < ATC c. MC = ATC > MR d. MC = MR = ATC e. this situation is not possible
Which of the following will most likely occur in the United States as the result of an unexpected rapid growth in real income in Canada and Mexico?
a. an increase in aggregate demand and output in the short run b. an reduction in aggregate demand and output in the short run c. a reduction in the price level d. a decrease in the natural rate of unemployment in the United States
List and describe the three different types of transfers discussed in this chapter. Give a hypothetical example of each to help support your answer