According to the neoclassical model, what would not result from the government levying a tax on firms for each worker the firm lays off?
A. Moral hazard would encourage workers to not work as hard as before.
B. Firms would be less likely to lay off workers.
C. The long-run unemployment rate would decrease.
D. Unemployed workers would remain unemployed for longer periods of time.
E. Firms would be less likely to hire workers.
Answer: C
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Which of the following is true? a. The FDIC sets the reserve requirements for commercial banks
b. The Federal Reserve System guarantees the deposits in almost all banks up to a limit of $1,000,000 per account. c. If a bank should fail, the FDIC guarantees that depositors can get their funds up to a limit of $250,000 per account. d. all of the above
Jacqui decides to open her own business and earns $50,000 in accounting profit the first year. When deciding to open her own business, she withdrew $20,000 from her savings, which earned 5 percent interest. She also turned down three separate job offers with annual salaries of $30,000 . $40,000 . and $45,000 . What is Jacqui's economic profit from running her own business?
a. $-56,000 b. $-6,000 c. $4,000 d. $19,000
The open-economy macroeconomic model takes
a. GDP, but not the price level as given. b. the price level, but not GDP as given. c. both the price level and GDP as given. d. the price level and GDP as variables to be determined by the model.
What is the crime externality associated with education?
A. A well-educated person earns higher income and commit less crime. B. A well-educated person runs for office and steals from society. C. A well-educated person implements policies that benefit other educated individuals. D. Schools and universities are a rip-off. Every worker in this university is a criminal.