Which of the following statements is true about the U.S. economy?
A) Each year, many new jobs are created, but few existing jobs are destroyed, and the unemployed find jobs quickly.
B) Each year, few new jobs are created, but few existing jobs are destroyed, keeping unemployment low.
C) Each year, many new jobs are created and many existing jobs are destroyed.
D) Each year few jobs are created, and therefore it takes the unemployed a long time to find a new job.
Answer: C
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All of the following statements are true regarding voluntary production reduction programs EXCEPT
A. they offer firms incentives to reduce their production voluntarily. B. they include payments to producers who reduce production. C. they are an attempt to limit supply. D. they are an attempt to protect consumers from high prices.
Suppose that an economy produces 2400 units of output, employing the 60 units of input, and the price of the input is $30 per unit.
Refer to the information above. All else equal, if the price of each unit of input decreased from $30 to $20, then productivity would: A. Increase from $40 to $90 and aggregate supply would decrease B. Increase from $50 to $60 and aggregate supply would decrease C. Increase from $60 to $70 and aggregate supply would increase D. Remain unchanged but aggregate supply would increase
An increase in the money supply is likely to reduce:
A. The general price level B. Nominal income C. Money demand D. Interest rates
Suppose Erie Textiles can dispose of its waste "for free" by dumping it into a nearby river. While the firm benefits from dumping waste into the river, the waste reduces fish and bird reproduction. This causes damage to local fishermen and bird watchers. At a cost, Erie Textiles can filter out the toxins, in which case local fishermen and bird watchers will not suffer any damage. The relevant gains and losses (in thousands of dollars) for the three parties are listed below. WithFilterWithoutFilterGains to Erie$200$400Fisherman$180$50Bird Watchers$130$25Local fishermen and bird watchers would be willing to compensate Erie Textiles ________ for operating with a filter.
A. no more than $75,000 B. nothing C. no more than $235,000 D. up to $310,000