Suppose that consumers decide to walk to work more frequently and drive cars less. Companies that make walking shoes hire workers, while automobile companies lay off workers. This is an example of
a. frictional unemployment created by sectoral shifts.
b. frictional unemployment created by efficiency wages.
c. structural unemployment created by efficiency wages.
d. structural unemployment created by sectoral shifts.
a
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A(n) ________ is an auction in which bids are placed publicly and the price decreases until a bidder stops the auction
A) open outcry English auction B) open outcry Dutch auction C) silent auction D) penny auction
When a borrower fails to pay back a loan according to the agreed-upon terms, it is called:
A. credit risk. B. default. C. opportunity cost. D. inflation.
Which of the following is not correct?
a. Market power can cause markets to be inefficient. b. When the decisions of buyers and sellers affect nonparticipants, markets may be inefficient. c. The tools of welfare economics cannot help economists when markets are inefficient. d. Externalities can cause markets to be inefficient.
According to the theory of efficiency wages, if a firm stops paying efficiency wages it is likely to see a(n)
a. increase in the number of job applicants and an increase in how long workers stay on the job. b. increase in the number of job applicants and a decrease in how long workers stay on the job. c. decrease in the number of job applicants and an increase in how long workers stay on the job. d. decrease in the number of job applicants and a decrease in how long workers stay on the job.