Excess capacity implies:
A. Productive inefficiency
B. Allocation inefficiency
C. Productive efficiency
D. Allocation efficiency
A. Productive inefficiency
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
In 1991, Argentina decided to peg its currency (the Argentinean peso) to the U.S. dollar. Most of Argentina's trading, however, was with Brazil and Europe, not the United States. What result would pegging the Argentinean peso to the U.S
dollar have on the cost of imports from and exports to Brazil and Europe?
Suppose a negative income tax program is established at 25 percent, and a poverty threshold minimum of $15,000 is guaranteed for a family of four. If this family earned $50,000 in the workplace, the government payment to the family under this program would equal
a. $2,500 b. $1,000 c. $10,000 d. $1,500 e. zero
Which of the following government policies is not likely to reduce unemployment?
a) increasing payroll taxes b) making loans to the unemployed who wish to start businesses of their own c) providing retraining subsidies d) offering relocation assistance to the unemployed who find work out of town e) providing publicly funded job placement agencies