Even if the economy has considerable excess capacity, new government spending that creates new jobs involves opportunity costs because
A. goods other than those purchased by government could have been produced and consumed.
B. unemployed workers are unwilling to surrender leisure time to take paid jobs.
C. excess capacity implies that the capital stock exceeds equilibrium.
D. government employment is inefficient relative to jobs in the private sector.
E. expansionary monetary policy stimulates employment without growth of national debt.
A. goods other than those purchased by government could have been produced and consumed.
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The argument that developing countries with lax environmental standards will attract foreign manufacturers who want to escape stricter standards in their own countries is known as the pollution havens hypothesis
Indicate whether the statement is true or false
The differences between a competitive market and a monopoly include all of these except:
a. excess profits would be competed away in a competitive market, but persist in a monopolistic market b. a competitive market would work toward production of the quantity consumers seek, while a monopolistic market may restrict output to raise short term prices c. a competitive market's cost curves will shift with the market, while a monopoly's cost curves will remain stable d. a competitive market would work toward production of the quantity consumers seek, while a monopolistic market may restrict output to raise long term prices
Anything can be money if it acts as a:
a. medium of exchange. b. All of the answers must be correct. c. store of value. d. unit of account.
Last month a country sold more goods and services to residents of foreign countries than it purchased from them. What does this imply about this country's trade balance?