Structural unemployment is likely to be affected by
A. the amount of the money supply.
B. the reservation wage curves of people.
C. an economic recession or boom.
D. minimum wage laws in the economy.
Answer: D
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When the U.S. government launched a massive rescue plan in response to the 2008-2009 financial crisis, the overall demand for loanable funds ________ because the ________
A) decreased; demand by households, businesses, and financial institutions changed by the same amount as the federal government demand B) did not change; demand by households, businesses, and financial institutions changed by the same amount as the federal government demand C) increased; demand by households, businesses, and financial institutions increased as did the federal government demand D) decreased; demand by households, businesses, and financial institutions decreased by more than the federal government demand increased E) increased; demand by households, businesses, and financial institutions increased by more than the federal government demand increased
With higher future taxes
A) current consumption declines. B) current consumption stays the same. C) current consumption increases. D) current consumption depends on other factors.
An example of moral hazard is
a. A taxi driver paid per mile taking a longer route than necessary b. a piece-rate garment worker shirking more than a per hour worker c. an hourly salesman working harder than a commission salesman d. an author on contract going to as many book signings as one with a percentage royalty rate
Statistical data provided by the U.S. Department of Transportation shows that the median income of individuals traveling on the nation's bus systems is $18,000 compared to $65,000 for those who normally travel by air. This finding is best explained by which of the following statements?
a. Persons with high income are more likely to fly because the opportunity cost of their time is generally higher than those with lesser income. b. Traditionally, lower income groups prefer slower methods of transportation. c. Wealthy individuals own stock in the airlines and, therefore, receive preferential treatment. d. Low-income groups are generally located near bus stations; wealthy groups congregate around airports.