If the intertemporal substitution hypothesis is correct, then
A. the unemployment rate is always artificially high.
B. discouraged workers will not exist.
C. discouraged workers should be included in the unemployed population because they actually want a job at the going wage.
D. discouraged workers should not be included in the unemployed population because they are optimally choosing more leisure during a time of low wages.
E. the unemployment rate is always artificially low.
Answer: D
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Which one of the following is not a possible barrier to entry high enough to keep competing firms out of a monopoly industry?
A) large economies of scale that result in a natural monopoly B) The monopoly firm has control of a key resource necessary to produce a good. C) a high concentration ratio D) There are important network externalities in supplying a good or service.
Import quotas on steel tend to result in higher quantities of steel being sold at lower prices than would be observed in the absence of a quota
Indicate whether the statement is true or false