An increase in the marginal cost arising from a more complex specialized investment environment will cause the optimal contract length to:

Which of the following statements is true?

A) Capitalism has a tendency to eliminate scarcity. B) Competition could be eliminated if money were abolished. C) Competition is desirable and cooperation is undesirable. D) Greed must be present for a market transaction to be effective. E) None of the above.

If the unemployment rate is above its natural rate, then ________

A) output is below its potential level B) there is excess tightness in the labor market C) wages and prices will rise more rapidly and the AS curve will shift to the left D) all of the above E) none of the above