Which types of unemployment still occur even when the economy is considered to be operating at full employment?
What will be an ideal response?
At full employment, there will still be frictional and structural unemployment.
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Many middle-to-older-aged men now claim they "need" Viagra (the male impotency wonder drug) for an enjoyable sex life. The economic way of thinking predicts
A) more men would be likely to claim they need Viagra if the price per pill were much lower (say two cents each) compared to the current price. B) fewer men would be likely to claim they need Viagra if the price per pill were much higher (say, two hundred dollars each) compared to the current price. C) other things constant, more prescriptions would be written if the price of Viagra falls significantly. D) other things constant, fewer prescriptions would be written if the price of Viagra rises significantly. E) all of the above are true.
Why is a competitive market efficient?
What will be an ideal response?
All of the following are advantages of a corporation EXCEPT
A) double taxation. B) limited liability. C) ability to raise large sums of financial capital. D) unlimited life.
If government increases its tax revenues by $15 billion and the MPC is 2/3, then we can expect the equilibrium GDP to:
A. decrease by $30 billion. B. decrease by $45 billion. C. decrease by $35 billion. D. decrease by $55 billion.