The "no shirking constraint" (NSC) curve is
A) downward-sloping to reflect the fact that at higher wages, firms will monitor workers more to see whether they are shirking.
B) downward-sloping to reflect the fact that shirking tends to be higher in lower-paying industries.
C) upward-sloping because at high levels of unemployment, workers will refrain from slacking without much other incentive.
D) upward-sloping because at high levels of employment, many "slacking" individuals have been hired.
E) vertical because the constraint represents the absolute amount of time a firm will tolerate workers' slacking without laying them off.
C
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The Solow model is used to explain ________
A) why some economies experience higher rates of growth than others B) the relationship between price and quantity demanded C) the relationship between the rate of inflation and the rate of unemployment D) the notion of opportunity cost
The bowed shape of the traditional production possibilities curve reflects the
A) negative side effects of economic growth. B) fact that not all resources are equally well-suited to producing all goods. C) costs of unemployment. D) problems of inequality.