If, as a Result of Imperfect Information, Firms Set Their

question 51

Multiple Choice

If, as a result of imperfect information, firms set their wage rates below the market clearing wage rate

• A) unemployment increases.
• B) there will be a surplus of workers.
• C) there will be a shortage of workers.
• D) there will be equilibrium in the labor market.

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Definitions:

GDP

Gross Domestic Product, the total value of all goods and services produced within a country in a specific time period.

Federal Government

The national government of a federation, which holds the authority to govern issues that affect the entire country.

Tax Receipts

The income received by the government from taxes.

Federal Transfer Payments

Government payments transferred to individuals or states, often for assistance, without requiring direct services in return.