Discuss the types of policies that could be implemented to reduce European unemployment
What will be an ideal response?
There are basically two sets of policies. First, policy makers could reduce labor market rigidities that some economists believe have contributed to the high unemployment. Some examples of labor market rigidities are high unemployment benefits, high minimum wages, and excessive job protection regulations. The second set of policies includes bad labor relations and inadequate macroeconomic policies.
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A goal of equality of income can be justified based on the utilitarian idea that _____
a. individuals face diminishing marginal utility of income b. social welfare functions are convex to the origin c. rich people have more than they every could need d. redistribution does not lead to an increased excess burden of taxation
Dollarization is associated with each of the following, except:
A. adopting the monetary policy of the country whose currency is being used. B. the central bank no longer has the ability to be the lender of last resort. C. slower integration into world markets. D. the loss of revenue from printing currency.
Which of the following is most important if you want to achieve high earnings?
A) ability to identify and undertake actions where you can benefit at the expense of others B) willingness to work hard even if you are not productive C) ability to provide others with things that they value highly D) willingness to exploit workers and consumers
When an economy is experiencing a negative output gap, it means that the:
A. actual output is more than their potential output. B. price level is falling. C. price level is rising. D. actual output is less than their potential output.