The unemployment rate never falls all the way to zero. What percentage does it never seem to get below and stays that low only for very short periods?
a. 1%
b. 2%
c. 3%
d. 4%
c. 3%
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Labor expenditures associated with carrying out an abatement process are considered to be part of
a. capital costs b. fixed costs c. operating costs d. implicit costs e. none of the above
The Federal Reserve fears that the United States economy is growing too slowly and is stuck in a recession. To move the economy back to its potential GDP, the most likely policy action for the Fed is to ________ the federal funds and thus ________
A) raise; increase aggregate demand B) raise; decrease aggregate demand C) lower; increase aggregate supply D) lower; decrease aggregate supply E) lower; increase aggregate demand
Where do economic agents such as individuals, firms, and nations interact with each other?
A) in any arena that brings together buyers and sellers B) in any location where transactions can be monitored by consumer groups and taxed by the government C) in any physical location where people can physically get together for selling goods, such as shopping malls D) in public locations monitored by the government
Economist A.C. Pigou argued that to deal with a negative externality in production, the government should impose a tax equal to the cost of the externality
What did Pigou believe should be done in the case of a positive externality in consumption? How would his recommendation impact the demand and market equilibrium for the product which is generating the positive externality?