Which of the following best exemplifies a deadweight cost?
A) Eating something in a restaurant you don't really want because you have already paid for it.
B) Paying for something in a restaurant but not eating it.
C) Refusing dessert in a restaurant although it is included in the price of the meal.
D) Tipping the waiter even though he gave slow, surly, and inattentive service.
E) Waiting twenty minutes for a table to become available in a restaurant.
E
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Name two types of jobs most likely affected by "seasonal unemployment."
What will be an ideal response?
An economy is at a full-employment equilibrium, and then the aggregate demand curve shifts leftward. As a result, the price level ________ and real GDP ________
A) rises; increases B) rises; decreases C) falls; increases D) falls; decreases E) falls; does not change
Do policy makers know the exact value of the fiscal multiplier?
a. No, economists have almost no idea of the value of fiscal multipliers. b. No, they are not known with complete accuracy. c. Yes, economists know the precise value of the multiplier. d. Yes, although there is a very small range of uncertainty in the value.
The central bank has the ability to create money; this means it:
A. can control the availability of money but not the availability of credit in the economy. B. can make loans only when other institutions can. C. has an objective to maximize its profit. D. can impact the rate of inflation.