Researchers have found that once workers become ineligible for unemployment insurance, they become twice as likely to take a job. From this finding we may infer that unemployment insurance causes a(n) ________ in ________ unemployment
A) decrease; structural
B) increase; frictional
C) increase; structural
D) decrease; cyclical
B
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A tax can always be found and implemented that will correct a cause of an external effect
Indicate whether the statement is true or false
When impoverished peasants in South America and Asia cannot be convinced to stop growing crops for drug production, their situation demonstrates how poverty
a. lowers worker productivity. b. leads to environmental problems. c. supports transnational crime. d. creates health threats.
Let supply be given by P = 5Q and demand by P = 19 - 2Q. Suppose we now place a tax of 5 per unit of output on the seller. The new equilibrium quantity is:
A. 3 B. 7 C. 5 D. 2
Would you expect a tax on cigarettes to be more effective at discouraging consumption over the long run or the short run?
A. Short run because demand becomes more elastic over time B. Long run because demand becomes less elastic over time C. Short run because demand becomes less elastic over time D. Long run because demand becomes more elastic over time