Your roommate has the right to play her harmonica during the day. But you find the best time to study is during the day, and the harmonica playing makes it hard for you to concentrate. You tell your roommate that you will do her laundry every week if she does not play the harmonica during the day and she agrees to this. This is an example of
A. an injunction.
B. liability rules.
C. the Coase theorem.
D. the drop-in-the-bucket problem.
Answer: C
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The downward sloping labor demand curve demonstrates that as the ________ increases the ________ decreases
A) nominal wage; amount of labor supplied B) real wage; amount of labor supplied C) real wage; amount of labor hired D) nominal wage; amount of labor hired
What is the natural rate of unemployment?
A) the unemployment rate that exists when the economy is at a trough in a business cycle B) any unemployment rate that is above the inflation rate C) the unemployment rate that exists when the economy is at potential GDP D) an unemployment rate of 0%
The analysis of a progressive tax is very similar to that of a proportional tax.
A. True B. False C. Uncertain
Which of the following would not appear on a firm's accounting statement?
a. sunk costs b. fixed costs c. explicit costs d. implicit costs e. insurance costs