Which of the following does not represent a "labor market rigidity" to which critics refer when discussing unemployment in Europe?
A) generous unemployment insurance
B) restrictive monetary and fiscal policies
C) a high degree of employment protection
D) relatively high minimum wages
E) none of the above
B
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A central proposition of the new growth theory is that
A) growth will cease but prosperity will persist. B) knowledge is not subject to diminishing returns. C) government direction and oversight is necessary for consistent growth. D) growth is often just an illusion fostered by growth accounting.
There are several types of barriers to entry that can create a monopoly. Which of the following barriers is the result of government action?
A) public franchise B) control of a key resource C) economies of scale D) network externalities
A straight-line isoquant
A) is impossible. B) would indicate that the firm could switch from one output to another costlessly. C) would indicate that the firm could not switch from one output to another. D) would indicate that capital and labor cannot be substituted for each other in production. E) would indicate that capital and labor are perfect substitutes in production.
The purpose of the Supplemental Security Income program is
A) to provide a minimum income for all households with children. B) to provide a guaranteed minimum income for all Americans. C) to provide a minimum income for the aged, blind, and the disabled. D) to supplement Social Security for the elderly with medical problems.