Why does increasing employment not necessarily increase living standards?
a. Productivity always increases as employment increases.
b. Living standards and employment are always positively related.
c. Increasing employment may not be accompanied by higher real wages
d. There is no upper limit to labor force participation.
e. Real wages are not adjusted for inflation.
C
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If it is impossible or very costly to prevent someone from benefiting from a good even if the person does not pay for it, the good is
A) nonrival. B) nonexcludable. C) pure. D) rival.
In a simple Keynesian model, an increase in income leads to an increase in
A) savings. B) investment. C) the price level. D) the money supply.
In perfectly competitive markets, some buyers do not have full information about the products available.
Answer the following statement true (T) or false (F)
Taxes are the difference between
A. GDP and net exports. B. GDP and consumer spending. C. consumer spending and saving. D. GDP and disposable income.