The one quirk that labor markets have, which helps explain why unemployment goes up so much in a recession is that:
A. A price floor called a "minimum wage law" exists for the labor market
B. Wages are flexible upward but "sticky" downward
C. Firms are "demanders" of labor, rather than suppliers
D. Machines could "replace" humans in the labor market
B. Wages are flexible upward but "sticky" downward
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Of the following, what is the best example of structural unemployment?
a) a computer programmer who quits her job to move to a warmer climate b) a construction worker who loses his job in the winter c) an auto worker who loses her job during a recession d) a steel worker who is replaced by a robot e) a toymaker who worked for a company that closed because consumers did not buy its toys
If a firm expects that the price of its product will be lower in the future than it is today
A) the firm has an incentive to decrease supply now and increase supply in the future. B) the firm will not change supply until it knows for certain what will happen to its price. C) the firm has an incentive to increase quantity supplied now and decrease quantity supplied in the future. D) the firm has an incentive to increase supply now and decrease supply in the future.