Even though explicit contracts may lead to layoffs during recessions, explicit contracts may still be efficient because such contracts
A. guarantee that only the least-productive workers will be laid off.
B. reduce negotiation costs.
C. reduce unemployment effects.
D. will equitably spread the layoffs among junior and senior workers.
Answer: B
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Municipalities that have adopted the policy of "rent control" typically set the rentals on certain apartments well below equilibrium. As a result,
A) landlords have a difficult time finding tenants. B) prospective tenants have a difficult time finding available apartments. C) there is a surplus of apartments. D) All of the above.
Refer to the graph shown. Areas C and D represent:
A. the loss of surplus by producers resulting from a monopoly. B. consumer surplus redistributed to the monopolist. C. the cost to society of increasing output from Qm to Qc. D. the loss of surplus by consumers resulting from a monopoly.
The relationship that tells us how much a person intends to spend at various levels of income is
A) the expenditure function. B) the consumption function. C) the buying function. D) the spending function.
The difference between a three-digit North American Industry Classification System (NAICS) industry and a six-digit NAICS industry is that:
A. the three-digit industry is more specifically defined than the six-digit code. B. three-digit codes apply to a different set of industries than six-digit codes. C. three-digit codes are used to classify industries whereas six-digit codes are used to classify firms. D. the six-digit industry is more specifically defined than the three-digit code.