The payment of government unemployment insurance reduces the severity of recessions by

What will be an ideal response?


preventing a huge drop in income and spending for the unemployed.

Economics

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An airline can profit by offering standby customers an unsold seat at a substantial discount just before takeoff because

A. additional passengers are needed to balance the load. B. the marginal cost of additional passengers is very small. C. additional passengers add little to fixed costs. D. such passengers add more to profits than do those with reserved seats.

Economics

For banks

A) return on assets exceeds return on equity. B) return on assets equals return on equity. C) return on equity exceeds return on assets. D) return on equity is another name for net interest margin.

Economics

Suppose a legislation passed by the government encourages domestic oil exploration thereby reducing petroleum imports substantially. If the cost of production is uniform for all producers, which of the following will be observed in the petroleum market?

a. The world price of petroleum would decline. b. The domestic price of petroleum would decline. c. The world price of gasoline will remain unaffected. d. Crude oil consumption in the domestic and the world market would decrease.

Economics

Suppose an industry initially had been perfectly competitive and then became a monopoly. Which of the following would occur?

a. Consumer surplus would decrease. b. Consumer surplus would increase. c. Producer surplus would decrease. d. The deadweight loss would be eliminated.

Economics