Which of the following is true about unemployment?
a. the benchmark high-employment level is most likely between 3 and 4 percent
b. In recent years, the appropriate benchmark high-employment level has risen.
c. Based on the experience of the 1960s, a 7 percent unemployment rate was too low to be sustained without a buildup of inflationary pressure
d. During the 1970s, the benchmark high-employment level rose but this was not observed by economists at the time.
D
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Any point on or outside the PPF is attainable
a. True b. False Indicate whether the statement is true or false
The American Bar Association administers the bar examinations that prospective lawyers must pass before being allowed to practice law. The exam system thus allows the ABA to act like a
a. monopsony. b. union that can restrict the supply of lawyers. c. union that can increase the number of lawyers. d. None of the above is correct.
Danzon and Furukawa (2003) argue that:
a. the provision of government-provided free care increases the availability of newly introduced drugs to everyone covered by the government plan. b. generic competition in the U.S. has not done much to lower drug prices or spending. c. price controls in the U.S. would lower drug prices without affecting the overall availability of branded drugs or lowering incentives for future drug development. d. pharmaceutical price differences across countries are roughly in line with differences in per capita GDP, supporting the predictions of Ramsey pricing practices.
The "backward bending" portion of the labor supply curve implies that
A. higher wages lead to fewer hours of work supplied. B. the law of diminishing returns has settled in. C. a minimum wage law is in effect. D. higher wages lead to an increase in hours of work supplied.