A probable outcome of a decrease in aggregate demand and the subsequent cutback in production is
a. frictional unemployment
b. cyclical unemployment
c. cost-push unemployment
d. structural unemployment
e. transitory unemployment
B
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Use headlines from the recent news to illustrate the potential for conflict between self-interest and the social interest
What will be an ideal response?
The cost of inflation to society includes I. The opportunity costs of resources used by people to protect themselves against inflation II. The costs associated with recalculating prices
A) I only B) II only C) Both I and II D) Neither I nor II
Which of the following offers the best example of a positive externality?
a. A coastal dairy farmer's undeveloped land offers unimpeded views of the ocean for a nearby neighborhood. b. A pulp mill emits chlorine pollution into the water, harming members of society. c. A welding shop makes a lot of noise, reducing the property values of nearby homes. d. A person goes to a store and pay $0.75 for a candy bar that he can eat.
Suppose the domestic supply (QSU.S.) and demand (QDU.S) for bicycles in the United States is represented by the following set of equations:QSU.S. = 2PQDU.S. = 200 - 2P.Demand (QD) and supply (QS) in the rest of the world is represented by the equations:QS = PQD =160 - P.Quantities are measured in thousands and price, in U.S. dollars.In the absence of international trade, ________ thousand bicycles will be sold in the United States at a per unit price of
A. 50; $50. B. 100; $100. C. 100; $50. D. 150; $50.