As aggregate demand shifts right along the aggregate supply curve,
a. inflation and unemployment are higher.
b. inflation is higher and unemployment is lower.
c. unemployment is higher and inflation is lower.
d. unemployment and inflation are lower.
Ans: b. inflation is higher and unemployment is lower.
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The primary difference between private goods and public goods is that
A. private goods are consumed by private individuals whereas public goods are not consumed by private individuals. B. private goods often yield externalities but public goods do not. C. property rights can be assigned to public goods but not to private goods. D. public goods are nonrivalrous in consumption whereas private goods are rivalrous in consumption.
Over the past 30 years, the number of jobs in the United States requiring skilled labor has been declining as foreign countries steal these jobs away from the U.S. As a result, the domestic demand for skilled labor has been falling and the wage gap between skilled and unskilled labor has been narrowing
a. True b. False Indicate whether the statement is true or false
Suppose Indiana produces only steel and corn, with fixed amounts of land, labor, and capital resources. Which scenario best sets the stage for economic growth?
A) The unemployment rate in Indiana rises from 5% to 6%. B) The Midwest has a devastating drought. C) The percentage of Indiana residents with a college degree rises from 25% to 30%. D) The United States imports more and more low-cost steel from Asian countries.
Pollution problems generally represent
A) cases of good versus evil. B) cases of villain versus victim. C) morally neutral disagreements over competing uses of a scarce resource. D) Both a and b are correct.