What phase of the business cycle is our economy experiencing at the present time? Justify your answer.
What will be an ideal response?
This question might best be given as a group assignment. Direct your students to the current news media. In particular, The Wall Street Journal has frequent articles on the state of the economy as do news magazines such as Business Week. Even without reading any articles, students could surmise the phase by finding out the current level of real GDP and comparing it to past years. Students also can obtain information on inflation and unemployment rates and compare this information to similar statistics from the past years.
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Refer to the below graphs. (Assume that the pre-migration labor force in Country A is 0d and that it is 0u in country B.) What part of domestic output in country B is the total wage bill or total wage income before and after the emigration?
A. Area 0vqtand area 0wrt, respectively
B. Area 0vqt and area 0wsu, respectively
C. Area 0wsu and area 0vqt, respectively
D. Area 0wsu and area 0wrt, respectively
Assume that the government of the state of New Jersey has determined that a large number of injuries and deaths have occurred as a result of accidents involving the installation and repairs of electrical equipment at private residences
In reaction to this problem the state assembly decided to pass a law which made a requirement that all certified electricians take and pass a tougher state licensing examination. Analyze the impact that this law is likely to have on the market for electricians and explain why safety may not necessarily improve.
The difference between scarcity and a shortage is that
A) scarcity is caused by poverty and shortages are caused by natural disasters. B) shortages are a type of scarcity caused by natural disasters while scarcity is caused by human errors. C) scarcity always is a part of human life while shortages usually are temporary. D) shortages are always part of human life while scarcity is usually temporary.
Because firms in an oligopoly are interdependent, they attempt to maximize revenues rather than profits
a. True b. False