If the unemployment rate rises because the number of people not working but searching for work rises, economists would attribute this to the
A. discouraged worker effect.
B. fallacy of composition.
C. encouraged worker effect.
D. none of the options are correct.
Answer: C
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In a closed economy, national savings will be:
A. lower than private savings if the government runs a deficit. B. higher than private savings if the government runs a deficit. C. lower than private savings if the government runs a surplus. D. equal to private savings if the government runs a deficit.
Why does the government allow some markets to be monopolized by granting patents?
a. to promote a more equal distribution of income b. to correct for negative externalities c. to promote technological progress d. to ensure lower prices for consumers in the short run
Oligopoly is an industry with a small number of firms producing homogeneous or differentiated goods with minimal barriers to entry
a. True b. False Indicate whether the statement is true or false
For given inputs of labor and capital, if technology is better, labor productivity will be
a. higher. b. lower. c. unchanged. d. characterized by increasing returns to scale.