According to Nobel Laureate Edmund Phelps, minimum wages cause higher unemployment, but wage subsidies cause higher employment.
a. true
b. false
Ans: a. true
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
The effort used to coordinate the factors of production is a description of
A) entrepreneurshi
If the percent change in price is greater than the percent change in quantity demanded, then demand is price inelastic
Indicate whether the statement is true or false
Inmates at the federal penitentiary at Lompoc, California, accepted packages of mackerel in exchange for goods and services. Why were they willing to accept mackerel in exchange for goods and services?
A) because mackerel is a good source of protein B) because prison authorities deemed mackerel legal tender C) because the inmates know that they could use the packages of mackerel to buy other goods and services D) because the inmates do not wish to consume mackerel