Which of the following is one possible explanation for the change in the natural rate of unemployment in the United States during the 1970s?
A) contractionary fiscal policy
B) an increase in the proportion of labor contracts that were indexed
C) contractionary monetary policy
D) all of the above
E) none of the above
E
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Why do negative externalities like pollution result in inefficiency?
a. Because producers artificially restrict their supply. b. Because producers ignore the external costs they impose on third-parties. c. Because producers manufacture more goods than people can afford to buy. d. Because producers will receive an unequal distribution of profits.
Economists disagree about whether increasing the minimum wage is a good idea, because they put different weight on the importance that the negative impacts have relative to the positive impacts. As such, the disagreements are usually over
a. normative issues b. positive issues c. the mathematical calculations in an economic model d. whether microeconomics or macroeconomics is more important e. whether economic theory is useful in explaining the behavior of actors in the economy
When a country that imports a particular good imposes a tariff on that good,
a. consumer surplus increases and total surplus increases in the market for that good. b. consumer surplus increases and total surplus decreases in the market for that good. c. consumer surplus decreases and total surplus increases in the market for that good. d. consumer surplus decreases and total surplus decreases in the market for that good.
The Sherman Antitrust Act
a. outlawed restraints and monopolies that hindered trade. b. nationalized the railroads. c. established the FDA. d. applied only to banking.