Unemployment insurance contributes to structural unemployment by:
A. allowing unemployed workers to search longer or less intensively for jobs.
B. keeping wages above the market-clearing level.
C. keeping wages below the market-clearing level.
D. forcing unemployed workers to take the first job offered to them.
Answer: A
You might also like to view...
Consider the production of some industrial good that creates air pollution. The table below gives the marginal social cost (MSC), the marginal cost (MC), and the marginal social benefit (MSB) for each level of output (Q)
Q MSC MC MSB 1 3 2 11 2 6 4 10 3 9 6 9 4 12 8 8 5 15 10 7 6 18 12 6 The inefficient market quantity is ________ and the efficient market quantity is ________. A) 4; 3 B) 6; 3 C) 3; 4 D) 4; 6
If two resources, such as labor and farm machinery, are complementary,
a. one can be used in place of the other b. an increase in the price of one will increase the demand for the other c. an increase in the price of one will increase the supply of the other d. a decrease in the price of one will increase the productivity of the other, which will decrease the demand for that other resource e. a decrease in the price of one will increase the demand for the other
Assume that there is no accelerator affect. The MPC = 3/4 . The government increases both expenditures and taxes by $600 . The effect of taxes on aggregate demand is 3/4 the size of that created by government expenditures alone. The crowding out effect is 1/5 as strong as the combined effect of government expenditures and taxes on aggregate demand. How much does aggregate demand shift by?
a. $1480 b. $480 c. $160 d. None of the above is correct.
Refer to the accompanying figure. Suppose a consumer protection group convinces the government to impose price controls in this market. If the government requires cheese to be sold for less than the equilibrium price, then, relative to before the price controls, total consumer surplus in the market:
A. would increase because consumers would be able to purchase more cheese at a lower price. B. would increase because consumers would be able to purchase the same quantity of cheese at a lower price. C. would decrease because of the reduction in equilibrium price. D. could either increase or decrease.