The RBC approach has workers allocating their labor effort over blocks of time, with periods of intense activity when wages are high alternating with slack periods of vacation and leisure
This makes the labor supply curve rather ________, with unemployment an entirely ________ phenomenon. A) steep, voluntary
B) steep, involuntary
C) flat, voluntary
D) flat, involuntary
C
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Import taxes are levied to generate revenue and encourage imports
a. True b. False
Have unions been successful at raising wages for their members? What about raising wages for all workers?
What will be an ideal response?
Price ceilings and price floors
A) shift demand and supply curves and therefore have no effect upon the rationing function of prices. B) interfere with the rationing function of prices. C) make the rationing function of free markets more efficient. D) cause surpluses and shortages, respectively.
Refer to the accompanying figure. Suppose the solid line shows the current demand for coffee. In response to a news story explaining that coffee causes heart disease, you should expect:
A. the demand curve to shift to D(A) because some people will stop drinking coffee. B. neither a change in quantity demanded nor a shift in demand. C. the demand curve to shift to D(B) in anticipation of higher future prices. D. the quantity of coffee demanded to decrease, but no shift in the demand curve.