Could the advent of the internet completely eliminate frictional unemployment?
What will be an ideal response?
While the internet can improve the exchange of information, that is not enough to reduce frictional unemployment to zero. Some workers, for example, would prefer to continue searching for jobs in their own area rather than moving across the country to seek another job. In fact, improving information flows could even have a negative effect of informing workers of other opportunities in the economy and thereby leading to more of them quitting their current jobs to seek other employment!
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If Mary wants to use advertising to reduce the elasticity of demand for her dry cleaning services, she should make sure the advertising: a. clearly states the prices she charges
b. shows that she is producing a product like the other dry cleaners in town. c. shows why her services are truly different from the other dry cleaners in town. d. does none of the above.
The U.S. economy in 2009 was characterized by an excess level of output. This corresponds to a recessionary gap
a. True b. False Indicate whether the statement is true or false
Which of the following is an example of barter?
a. A parent gives a teenager a $10 bill in exchange for her babysitting services. b. A homeowner gives an exterminator a check for $50 in exchange for extermination services. c. A barber gives a plumber a haircut in exchange for the plumber fixing the barber's leaky faucet. d. All of the above are examples of barter.
Historically speaking, a one-dollar decrease in household wealth will cause consumer spending to fall by:
A. $0.30 to $0.70. B. $3.00 to $7.00. C. $0.03 to $0.07. D. $30.00 to $70.00.