Research shows programs like unemployment insurance, disability or health insurance, and job training can be effective in fighting:
A. neither transient nor chronic poverty.
B. chronic poverty, but not transient poverty.
C. both transient and chronic poverty.
D. transient poverty, but not chronic poverty.
Answer: D
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When people’s income increases, demand for science fiction novels increases. The novels are
a. an inferior good. b. substitutes. c. a normal good. d. regular goods.
How does the calculation of GDP include the costs of natural resource depletion that occurs when output is produced?
a. The value of resource depletion is added to GDP. b. The cost of resource depletion is not measured in GDP. c. The cost of resource depletion is added to real but not nominal GDP. d. Resource depletion causes GDP to overstate well being.
If the price of grapes increases, total expenditures on grapes will decline if
a. there are few substitutes for grapes. b. the supply of grapes is inelastic. c. the demand for grapes is elastic. d. grapes are a normal good.
Prime Minister Emma Bigshot urges passage of a bill to reduce unemployment benefits from very generous levels in her country. She also urges her country's central bank to raise the rate at which the money supply is increasing. In the long run which, if either, of these policies will reduce the unemployment rate?
a. both reducing the generosity of unemployment benefits and raising the rate at which the money supply is increasing b. reducing the generosity of unemployment benefits but not raising the rate at which the money supply is increasing c. raising the rate at which the money supply is increasing, but not reducing the generosity of unemployment benefits d. neither reducing the generosity of unemployment benefits nor raising the rate at which the money supply is increasing