If an economy has been operating below its potential output level,
a. frictional unemployment is too high
b. more individuals should begin entering the labor force
c. the government should create more jobs
d. unemployment is likely rising.
e. the production possibilities frontier will shift
D
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The owner of a proprietorship has ________ liability and ________ required to use all of his or her entire wealth to pay for the firm's losses
A) limited; might be B) limited; is not C) unlimited; might be D) unlimited; is not
Capital flight raises both a country's exchange rate and its interest rate
a. True b. False Indicate whether the statement is true or false
If a central bank reduced inflation by 2 percentage points and that made output fall by 3 percentage points for 2 years and the unemployment rate rise from 3 percent to 5 percent for 2 years, the sacrifice ratio is
a. 1. b. 2. c. 3. d. None of the above is correct.
Why does the market not provide national defence?
a) It is impossible to prevent any single person from enjoying the benefit of national defence. b) The fixed cost of national defence is too high. c) The necessary resources for national defence are not available in the private sector. d) Private sectors are not willing to pay for it.