(Last Word) In response to the Great Recession, Congress extended the maximum period for drawing unemployment benefits from 26 to 99 weeks. While this was done to help workers financially and to help the economy by stimulating demand, it had what
unintended consequence?
A. It significantly increased the rate of inflation.
B. It drove the unemployment rate lower than the lowest prerecession rate.
C. It encouraged millions of unemployed workers to return to school, driving up projected
future rates of labor productivity.
D. It prompted inefficiently long searches that kept the unemployment rate higher.
D. It prompted inefficiently long searches that kept the unemployment rate higher.
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In what sense is tariff escalation protectionist? What alternatives exist for remedying this problem?
What will be an ideal response?
Economists estimate that decreasing barriers to migration by just 5 percent will:
A. increase economic welfare of sending countries by trillions of dollars. B. decrease economic welfare of the countries that would lose their citizens to richer countries by trillions of dollars. C. decrease economic welfare of receiving countries by more than 5 percent. D. increase economic welfare by more than lifting restrictions on capital mobility in their entirety.
Which of the following is not included in GDP but occurs hand-in-hand with improvements in GDP?
a. production b. services c. investment d. environmental protection
Which of the following statements is not true in a perfectly competitive industry in long-run equilibrium?
a. A profit-maximizing firm may produce any output level at which P < LRAC. b. Every firm produces at an output level at which MC = LRAC. c. There is no entry or exit from the industry. d. No firm earns an economic profit.