Two goods are substitutes when
A) an increase in the price of one reduces the demand for the other.
B) an increase in the price of one raises the demand for the other.
C) the two goods are used together.
D) the two goods have the same price.
Answer: B
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Structural unemployment may result from all of the following factors EXCEPT
A) improved elementary and secondary education. B) union wage contracts. C) government-imposed licensing arrangements that restrict entry into certain professions. D) welfare and unemployment benefits.
The Phillips Curve will shift because of:
A. normal inflation. B. hyperinflation. C. expected inflation. D. core inflation.
From the Industrial Revolution to the present, innovation has played a major role in the growth of output. What do the leading analysts of economic growth argue were some of the most significant innovations of this period?
Refer to the information provided in Figure 28.3 below to answer the question(s) that follow.
Figure 28.3Refer to Figure 28.3. A minimum wage of $12
A. will lead to unemployment of 10. B. will lead to unemployment of 20. C. will lead to unemployment of 40. D. will have no effect because the minimum wage is set above the equilibrium wage and for a minimum wage to have any effect on the labor market it must be below the equilibrium wage.