Suppose that air traffic controllers, whose wages have been locked into place by a two-year contract, are laid off during a recession. This example is consistent with the
A. efficiency wage explanation of unemployment.
B. explicit contract explanation of unemployment.
C. relative-wage explanation of unemployment.
D. social contract explanation of unemployment.
Answer: B
Economics
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Which fundamental economic question requires society to choose the technological and resource mix used to produce goods?
a. The What to Produce question. b. The Why to Produce question. c. The How to Produce question. d. The For Whom to Produce question.
Economics
In the following graph, the price of capital is $12 per unit. If the price of labor is $30 per unit, the lowest possible cost of producing 200 units of output is
A. $4,000. B. $3,000. C. $1,200. D. $2,400. E. none of the above
Economics