A positive supply shock causes stagflation in the short run
a. True
b. False
B
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The decisions of buyers and sellers that affect people who are not participants in the market create
a. market power. b. externalities. c. profiteering. d. market equilibrium.
A price ceiling does all of the following except:
A. Increases the quantity demanded relative to the equilibrium level. B. Creates excess supply. C. Creates a market shortage. D. Decreases the quantity supplied relative to the equilibrium level.
Tariffs:
A. may be imposed either to raise revenue (revenue tariffs) or to shield domestic producers from foreign competition (protective tariffs). B. are also called import quotas. C. are excise taxes on goods exported abroad. D. are per-unit subsidies designed to promote exports.
The New York Times reported in November 2008 that 240,000 additional people lost their jobs which increased the unemployment rate to 6.5 percent
In addition, it was noted that a large number of college graduates were "taking jobs that do not require a college degree." It was also expected that "teens will be thrown out of the labor market....causing youths to miss experience" that could help them prepare for higher-skilled jobs. The article reflects the idea that unemployment is a problem because it results in A) a loss of human capital. B) fewer discouraged workers. C) a loss of income. D) a decrease in the labor force.