Conservatives and liberals ___ on the causes of poverty and ___ on how to solve the poverty problem.
A. agree; agree
B. agree; disagree
C. disagree; agree
D. disagree; disagree
D. disagree; disagree
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The figure above shows the market for pants. If 6 million pairs of pants are produced, the deadweight loss is
A) zero. B) the triangle ABE. C) the triangle BCE. D) the triangle ACE. E) the triangle BCE minus the triangle ABE.
Suppose the federal government makes it mandatory for employers to provide health insurance to all employees. Assuming the new mandate applies to homebuilders, the
A) demand for construction workers is likely to increase. B) supply of new homes is likely to increase. C) supply of new homes is likely to decrease. D) supply of new homes will remain the same; businesses will simply "pass" the higher costs on to consumers.
In the market for bicycles, explain what happens to the supply and demand curves when there is an increase in the price of steel used to make bikes
What will be an ideal response?
What is the Lucas critique, and why was it so important to macroeconomists in the 1970s?
What will be an ideal response?