For this question, assume that firms' of productivity are accurate while workers' expectations of productivity adjust slowly over time. In this case, an increase in productivity will cause which of the following?
A) an increase in both the real wage and the natural rate of unemployment
B) a decrease in both the real wage and the natural rate of unemployment
C) an increase in the real wage and a reduction in the natural rate of unemployment
D) a decrease in the real wage and an increase in the natural rate of unemployment
E) none of the above
C
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Using the aggregate supply and demand model, assume the economy is operating along the intermediate portion of the aggregate supply curve. An increase in the money supply will increase the price level and:
a. lower both the interest rate and real GDP. b. raise both the interest rate and real GDP. c. lower the interest rate and raise GDP. d. raise the interest rate and lower real GDP.
Which market structure would likely have the highest concentration ratio?
a. Monopoly b. Oligopoly c. Monopolistic competition d. Perfect competition
The advantages of emissions permits over taxes is/are that
A. it increases uncertainty about the quantity of pollution that will be emitted. B. environmental authorities decide on an emissions ceiling in advance of issuing permits. C. pollutants can be raised to levels that have adverse effects on health. D. firms whose marginal cost of reducing emissions are lower than the market price of permits will find it more profitable to buy additional permits than to reduce their emissions.
Refer to Scenario 9.6 below to answer the question(s) that follow. SCENARIO 9.6: Celeste borrowed $40,000 from her brother to open a car wash. She pays her brother a 5% yearly return on the money he lent her. Her other yearly fixed costs equal $18,000. Her variable costs equal $40,000. In her first year, Amy sold 40,000 car washes at a price of $2.50 per car wash.Refer to Scenario 9.6. Celeste's profit is
A. $0. B. $20,000. C. $30,000. D. $40,000.