Refer to the graph shown. With an effective price ceiling at $3, total surplus is reduced by:
A. 100.
B. 30.
C. 20.
D. 50.
Answer: D
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Unemployment that occurs when there is deficient demand for the goods and services of an economy is called
A. structural unemployment. B. frictional unemployment. C. cyclical unemployment. D. natural unemployment.
Individuals who suffer from unemployment spells lasting more than six months are ________
A) chronically unemployed B) frictionally unemployed C) discouraged workers D) no longer counted as part of the labor force
Economists suggest that a market can fail if
A. no market for the product exists. B. governments dictate prices. C. producers get smaller profits than they desire. D. consumers have to pay more than they want to.
An example of a positive statement is:
A) The rate of unemployment should be 4 percent. B) A high rate of economic growth is good for the country. C) an increase in investment spending tends to reduce unemployment. D) Everyone in the country needs to be covered by national health insurance.