If a good is inferior, then the income elasticity of demand for that good is
a. positive and greater than 1
b. negative
c. positive and less than 1
d. 0
e. perfectly elastic
B
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On average, in the recessions since 1950, it has taken ________ for employment to return to its cyclical peak
A) about 6 months B) about 1 year C) about 18 months D) almost 2.5 years
Workers work for after-tax wages, thus an income tax represents a reduction in the effective wage rate
a. True b. False
Which of the following is not true about moral hazard?
A. It increases the difficulty of operating private insurance markets. B. It increases the difficulty of operating public insurance markets. C. It is the tendency of people to change behavior when insured. D. It is the tendency of people with higher risks to buy more insurance.
The unemployment due to changes in the types of skills employers require is called __________ unemployment
A) structural B) cyclical C) natural D) frictional