One example of a microeconomic question is, "How will prices in the clothing industry change if the government bans imports from China?"

Discuss the likely impact of each of the following on the unemployment rate:

a. The length of time workers are eligible to receive unemployment insurance payments is cut in half. b. The government passes a law making labor unions illegal. c. The minimum wage is raised by 50 percent. d. The government funds an Internet site where companies can post job openings at no charge.

In the real world, wage negotiations typically do not drag on for years:

A. because the company can simply offer the split that would eventually occur if the two sides played all the rounds. B. because neither a company nor employees can afford to not work for that long. C. unless the employees play an ultimatum game using a union to negotiate. D. None of these statements is true.