The economy's self-correcting mechanism appears to be more efficient at curing
a. recessionary gaps by reducing price levels.
b. inflationary gaps by reducing price levels.
c. unemployment by reducing wage levels.
d. inflationary gaps through inflation.
d
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If Sam does not have a job and is NOT currently looking for work but has looked in the past, he is considered
A) unemployed. B) not in the labor force. C) unemployed and in the labor force. D) unemployed and not in the labor force.
Which of the following policies is likely to generate the smallest increase in national saving?
A) an increase in income taxes B) an increase in consumption taxes C) a cut in government transfer payments D) None of the above policies will increase national saving.
Adverse selection is caused by
a. Hidden actions b. Hidden information c. Both of the above d. None of the above
The percentage of U.S. families below the poverty line is approximately
a. 5 percent b. 10 percent c. 25 percent d. 45 percent e. 65 percent