If an economy is operating on its production possibilities frontier (PPF), are there any unemployed resources in the economy?
What will be an ideal response?
No, because if there were any unemployed resources the economy would be producing below its PPF
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In the above figure, a single-price monopolist charges a price of ________ and the equilibrium competitive price is ________
A) $10; $20 B) $20; $30 C) $30; $20 D) $30; $10
On December 17, 2010, President Obama extended income tax cuts initially enacted in 2001 and 2003 for two additional years
According to the permanent-income hypothesis, these tax cuts would represent ________ income and would have ________ on consumption. A) permanent; a significant impact B) permanent; very little impact C) transitory; a significant impact D) transitory; very little impact
Does the existence of unemployment insurance eliminate the economic costs of unemployment?
What will happen in the economy if the government increases spending and increases taxes by equal amounts to pay for that additional government spending?
What will be an ideal response?