Endogenous variables in an economic model are those that the model takes as given and does not try to explain.
a. true
b. false
Answer: b. false
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Which of these represents an example of citizens who would not typically be counted as unemployed?
A) when your economics professor loses his job and gets a new one at McDonald's B) when your fourteen-year-old cousin loses her summer job in September C) when your neighbor has been out of work for so long that he decides to stay at home and write a novel D) all of the above E) none of the above
A tax that creates an excess burden may nevertheless improve efficiency if
A. consumption of the good has been generating beneficial externalities. B. consumption of the good has been generating no externalities. C. consumption of the good has been generating detrimental externalities. D. the good has been supplied by a monopolist.
Addictive substances such as tobacco have long-run demand that is more ______ than short-run demand. In other words, the consumption of addictive substances ______ price sensitive and raising prices ______ reduce consumption over time.
a. price elastic; is; will b. price inelastic; is; will c. price inelastic; is not; will not d. price elastic; is not; will not
Why can car insurance companies charge higher auto rates for new customers than for established customers, all else held constant?
What will be an ideal response?