The difference between voluntary and involuntary unemployment is that:
a. involuntary unemployment exists when wages are high.
b. voluntary unemployment exists in equilibrium.
c. voluntary unemployment falls as wages rise.
d. both b and c.
e. all of the above.
D
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Positive externalities and high transaction costs make voluntary social cooperation difficult because they
A) are also obstacles to the effective working of democratically controlled governments. B) can be eliminated by government. C) can best be reduced by abandoning persuasion and voluntary cooperation. D) make government intervention necessary. E) make it easier for cartels to operate effectively.
The property rights people actually possess
A) are limited to the rights sanctioned by law. B) are the rights they can exercise regardless of what others do. C) are the similar rights they grant other because all rights in a society must be mutual. D) depend heavily on the cooperation of other people.
If the tax function is T = t0 + t1Y where t1 equals 1/3, and if the marginal propensity to consume out of disposable income is 3/4, then the change in GDP per unit change in t0 (?Y/?t0) will be
a. ? 1. b. + 1. c. ? 1.5. d. ? 2. e. + 1.5.
At all points to the right of the intersection of the aggregate output (Y) and aggregate expenditures (AE) curves, there will be unplanned inventory accumulation
a. True b. False Indicate whether the statement is true or false