Innovations such as the microchip and the Internet lead to business cycle variations because:
A. they cause prices to be sticky.
B. significant innovations occur irregularly and unexpectedly.
C. the central bank will often change the money supply in response.
D. they cause prices to be flexible.
B. significant innovations occur irregularly and unexpectedly.
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During the antebellum period, the majority of the family labor on farms was devoted to investment type of activities—clearing land, constructing fences and buildings, and feeding and breeding livestock
Indicate whether the statement is true or false
When the government imposes a tax, sellers raise their price by the full amount of the tax
a. True b. False Indicate whether the statement is true or false
Which of the following statements is incorrect? a. Demand and supply curves for labor are constantly shifting
b. The typical unemployment compensation in the United States is one's full salary for up to 26 weeks. c. Unemployment compensation decreases the opportunity cost of being unemployed to a worker. d. Unemployment compensation encourages longer job searches, which may lead to a better match between jobs and employees.
In a market economy, who makes the decisions that guide most economic activity?
a. firms only b. households only c. firms and households d. government