If the unemployment rate is less than the natural unemployment rate, then
A) there is no frictional unemployment.
B) cyclical unemployment is greater than zero.
C) real GDP is less than potential GDP.
D) real GDP is greater than potential GDP.
E) frictional unemployment is negative.
D
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A market failure in the form of an externality arises when
a. production costs are included in the price of a good b. not all costs and benefits are included in the price of a good c. the benefits of consuming a good exceed the costs d. a market fails to achieve equilibrium e. equilibrium price is unstable
Which of the following events would result in a greater demand for U.S. dollars in the foreign exchange market, ceteris paribus?
A. Higher tariffs imposed by the United States on imports. B. An increase in interest rates in the United States. C. Higher quotas imposed by the United States on imports. D. An increase in interest rates in Japan.
Countries in which the government heavily regulates the labor market are likely to have ________ sacrifice ratio.
A. an infinite B. a high C. a low D. a negative
If the price of a good rises and the consumer's budget remains the same, what happens to the consumer's consumption possibilities?
What will be an ideal response?