Invisible hand is a term used by the economist ______ to describe how the decisions of households and firms lead to desirable market outcomes
Fill in the blank(s) with correct word
Adam Smith
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Drawbacks to using the establishment survey to calculate unemployment include all of the following except
A) the survey does not include information on self-employed persons. B) the survey may not include employment data at newly-opened firms. C) the survey provides no information on unemployment. D) the survey only includes data on full-time employees.
What are the private costs of driving an automobile? What are the external costs?
What will be an ideal response?
A recessionary gap:
a. is of little consequence in a capitalist economy. b. represents actual physical output lost. c. implies an equilibrium level of output less than the full-employment level. d. is associated with rising labor prices. e. will automatically close, according to the Keynesian model.
The government imposes a price ceiling on gasoline that is below the market price. You are asked to suggest a rationing scheme that will minimize the misallocation of resources. You suggest
A. using rationing coupons that cannot be resold. B. using rationing coupons that can be resold. C. using rationing only on weekdays. D. using rationing on a first-come, first-served basis.