Output in the goods and services market will be sustained into the future
a. if aggregate demand and short-run aggregate supply are in balance.
b. only when the prior choices of decision makers were based on a correct anticipation of prices.
c. only when prices are rising.
d. only when wage rates are declining.
B
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How does the use of collateral and net worth help reduce the problem of adverse selection?
What will be an ideal response?
Economists believe that scarcity forces everyone to:
a. satisfy all their wants. b. abandon consumer sovereignty. c. lie about their wants. d. create unlimited resources. e. make choices.
Real-wage unemployment can be caused by which of the following?
A. Minimum wage laws B. Retraining programs C. Low-interest student loans D. None of these cause real-wage unemployment.
In her book on the American work week, economist Juliet Schorr argues that Americans work too much. Her argument may be interpreted as concluding that this behavior
a. increases GDP but decreases well being. b. increases GDP and increases well-being. c. decreases GDP and decreases well being. d. decreases GDP but increases well being.