If more firms chose to pay efficiency wages, which of the following would shift to the right?
a. both the long-run Phillips curve and the long-run aggregate supply curve
b. the long-run Phillips curve but not the long-run aggregate supply curve
c. the long-run aggregate supply curve but not the long-run Phillips curve
d. neither the long-run Phillips curve nor the long-run aggregate supply curve
b
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Expenditures for attending college can be viewed as an investment in human capital.
Answer the following statement true (T) or false (F)
All of the following take place in the direct finance market except
A) ownership in corporations is sold in the form of common stock. B) ownership in corporations is sold in the form of preferred stock. C) corporate bonds are sold to savers. D) deposits from savers are accumulated and loans made to borrowers.
In the history of the United States, unemployment reached its highest rate
A) in the Panic of 1893. B) in the 1930s. C) in the period between World War II and the Korean War. D) in the Great Recession of the late 2000s.
Which of the following statements is INCORRECT regarding the model for information products?
A) Average total costs slope downward, because average variable cost is constant, average fixed cost slopes downward. B) The firm maximizes profit by setting the price of its product equal to marginal cost. C) Marginal cost equals average variable cost. D) In the long run, accounting profit is positive.