Does the existence of unemployment insurance eliminate the economic costs of unemployment?
What will be an ideal response?
While unemployment insurance reduces the costs of unemployment to the individual worker suffering from losing a job, it does not eliminate the economic or social costs of unemployment. The economic cost of unemployment is the output of goods and services lost to the economy when labor resources are unemployed. If the economy is experiencing unemployment, it is losing the production of goods and services that can never be replaced. Unemployment insurance simply spreads the costs of unemployment over the entire economy but does not eliminate the cost to the economy as a whole.
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Labor productivity is $30 per hour and aggregate hours are 165 billion hours. What does real GDP equal?
What will be an ideal response?
What is the maximum a monopolist would be willing to spend on rent-seeking behavior?
What will be an ideal response?
A decrease in the interest rate will cause the intertemporal budget constraint to _______________ through the endowment point.
A. pivot clockwise B. pivot counter-clockwise C. shift clockwise D. shift counter-clockwise
Which of the following is a new law on fishing imposed by the government to increase the total supply of fish?
a. Holders of fishing rights are not allowed to resell them to others. b. Governments have issued licenses that limit catches and fishing seasons. c. Quotas have enforced higher catches in coastal areas. d. Governments around the world have reduced their offshore jurisdictions.