The one quirk that labor markets have, which helps explain why unemployment goes up so much in a recession is that:
A. A price floor called a "minimum wage law" exists for the labor market
B. Wages are flexible upward but "sticky" downward
C. Firms are "demanders" of labor, rather than suppliers
D. Machines could "replace" humans in the labor market
B. Wages are flexible upward but "sticky" downward
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Medicare and Medicaid were enacted by the Johnson administration in 1965 as amendments to which federal law already in existence?
a. Welfare Act of 1960. b. Social Security Act. c. Employee Retirement and Income Security Act. d. Managed Care Act. e. Equal Rights Act.
Which of the following expenditures is included in the consumption component of the gross domestic product (GDP)?
a. The money spent on the purchase of stocks b. The money spent on the purchase of used furnitures c. The money spent on the purchase of a used car d. The money spent on the purchase of kitchen appliances e. The money spent on the purchase of bonds issued by the government
Changes in the price of oil
a. can only lead to recessions. b. have not contributed much to output fluctuations in the United States. c. change the economy principally by changing aggregate demand. d. created both inflation and recession in the United States in the 1970s.
Nonexcludability causes:
A. firms to supply a lower quantity than they would if they incurred the full costs of the provision of the good. B. people to demand a higher quantity than they would if they had to pay for what they consumed. C. people to demand a lower quantity than they would if they paid for what they consumed. D. firms to supply a higher quantity than they would if they had to pay for what they supplied.