Author Question: If the long-run industry supply curve in a perfectly competitive market is horizontal, then very ... (Read 166 times)

biggirl4568 · **on:** Jun 30, 2018

If the long-run industry supply curve in a perfectly competitive market is horizontal, then very likely input prices will ____ as industry output expands.
a. increase
b. decrease
c. remain constant
d. first increase and then decrease

Question 2

Unemployment compensation programs tend to increase the unemployment rate because:
a. they increase the opportunity cost of leisure.
b. they provide benefits only to unemployed people under the age of 18.
c. they legally fix the minimum wage that has to be paid to labor.
d. they allow unemployed persons to become more selective in what job offer they accept.
e. they do not provide benefits to labor engaged in the manufacturing sectors of the economy.