What factors can cause the natural rate of unemployment to change?
What will be an ideal response?
The key factors are demographics (including changes in the age, gender, and race of the population), public policy (including changes in unemployment insurance, and laws governing the labor market), sectoral shifts (including growth and decline in different industries and changes in where industries locate), and technological change including the introduction of new products that displace old products and increases in labor productivity.
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Assume there is a surplus in the market for hybrid automobiles. Which of the following statements correctly describes this situation?
A) Some consumers will be unable to obtain hybrid automobiles at the market price and will have an incentive to offer to buy the product at a higher price. B) The supply of hybrid automobiles is greater than the demand for hybrid automobiles. C) the surplus will cause an increase in the equilibrium price of hybrid automobiles. D) The price of hybrid automobiles will fall in response to the surplus; as the price falls the quantity demanded will increase and the quantity supplied will decrease.
Refer to the above figure. If the government uses rate-of-return regulation for the natural monopolist, the firm will charge price
A) P5 and sell Q1 units. B) P2 and sell Q1 units. C) P3 and sell Q3 units. D) P1 and sell Q4 units.