Demand-side market failures occur when:
A. the demand and supply curves don't reflect consumers' full willingness to pay for a good or
service.
B. the demand and supply curves don't reflect the full cost of producing a good or service.
C. government imposes a tax on a good or service.
D. a good or service is not produced because no one demands it.
Answer: A
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If output growth exceeds population growth for a country, then:
A.) Average living standards will increase. B.) GDP must have grown at a very rapid rate. C.) Per capita GDP will decrease. D.) This country must have overcome the problem of scarcity.
Which of the following is the most likely reason the age-earnings profile is steeper for immigrants than it is for natives in the United States for ages 20 to 45?
A. Immigrants have less leverage in negotiating wage increases. B. Immigrants under the age of 45 must earn more money in order to pay for the legal expenses associated with becoming a citizen. C. The minimum wage does not apply to immigrants until they have resided in the United States for three years. D. Immigrants under the age of 45 tend to remit a large portion of their earnings to their relatives who did not immigrate. E. Immigrant wages increase rapidly when they first come to the United States and begin developing stronger English skills.
When both inflation and unemployment are concerns, supply-side economists argue in favor of policies to shift the
A. aggregate supply curve to the right and lower the CPI, while Keynesian fiscal policy would shift the aggregate demand curve to the right and increase the CPI. B. aggregate supply curve to the left and raise the CPI, while Keynesian fiscal policy would shift the aggregate demand curve to the left and decrease the CPI. C. aggregate supply curve to the right and lower the CPI, which is the same policy Keynesian economists would advocate. D. aggregate demand curve to the right because unemployment is a more important concern than inflation.
Capital inflows are debits and capital outflows are credits.
Answer the following statement true (T) or false (F)