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Newspaper recycling has been highly successful—perhaps too successful, given that many households gather and return their newspapers to recycling centers. The amount of newspapers recycled has dramatically increased, along with the number of recycling plants. Yet newspapers prefer regular newsprint over recycled newsprint, so the demand for recycled newsprint has remained essentially unchanged. The result of this for the recycled newsprint market is
A. a decrease in the supply and a higher price for recycled newsprint.
B. an increase in the supply and a lower price for recycled newsprint.
C. an increase in the supply and a higher price for recycled newsprint.
D. a decrease in the supply and an increase in the demand for recycled newsprint.
Answer: B
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What will be an ideal response?
Sjen Mavago, the economics minister of the country of X-Marks-the-Spot, has concluded that entrepreneurs are unable to generate the kind of growth the country needs. Her decision to create state enterprises might be motivated by the desire to
a. earn profit b. provide jobs for friends and relatives of government officials c. take risks d. encourage a free market e. limit government's role in the economy
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Categories of unemployment include frictional unemployment, structural unemployment, cyclical unemployment, discouraged workers, and the underemployed
Indicate whether the statement is true or false