Suppose that unemployment increased last year in the United States by 5 percent. Which of the following questions would a positive analysis answer?
a. Should minimum wage be decreased to encourage employers to hire more?
b. How should hiring practices change to deal with this problem?
c. Will the causes of the unemployment continue to affect the economy?
d. Should the government expand its welfare program?
c. Will the causes of the unemployment continue to affect the economy?
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Refer to the figure above. What price does the firm face in the market?
A) $2 B) $4 C) $6 D) $8
When parents inoculate their children from communicable diseases prior to sending them off to school they not only provide their own children a benefit but also bestow a benefit on every other student at the school
There are now fewer students who can pass on these types of diseases. However, parents are not likely to take into account the fact that their actions create this external benefit. Therefore, economists argue that the market on its own may not provide for the optimal level of inoculations. What methods might work to get parents to take into account the external benefit when deciding whether to inoculate their children?
Typically, countries with high growth rates of per-capita GDP have
a. lower infant mortality rates b. higher life expectancies c. higher adult literacy d. all of the above e. higher unemployment rates.
The ratio of the debt to GDP is a measure of the burden the debt places on the economy.
Answer the following statement true (T) or false (F)