Which of the following statements is TRUE?
A) As a result of specialization some workers will be displaced and harmed in the short run by free trade.
B) Free trade leads to lower wages for all workers in both nations.
C) Specialization will result in a decline in an industry and none of those workers will be able to find other jobs.
D) Free trade will benefit all workers in a nation equally.
A
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If the unemployment rate in an economy is 12%, of which 5% is cyclical unemployment, 4% is structural unemployment, and 3% is frictional unemployment, what is the natural rate of unemployment?
What will be an ideal response?
Members of the European Union (EU), rely heavily on this form of indirect taxes
a. Value-added tax b. Excise tax c. Property tax d. Sales tax
Before the flu season begins, Jeremy gets a flu shot. As a result, Jeremy and several of his friends and relatives avoid the flu for the entire flu season. It would make sense to argue that
a. flu shots provide a positive externality, and that flu shots should be subsidized. b. if flu shots are not subsidized, then the number of people getting flu shots will be smaller than the socially optimal number. c. the externality generated by flu shots is more like the externality generated by education than the externality generated by pollution. d. All of the above are correct.
The least costly way to produce any given level of output is indicated by
A. the point of intersection between the isoquant corresponding to that level of output and the Y-axis. B. the point of intersection between the isoquant corresponding to that level of output and the X-axis. C. the isocost line corresponding to that level of output. D. the point of tangency between an isocost line and the isoquant corresponding to that level of output.