The chief economic cost associated with unemployment is
a. the benefits paid to the unemployed by the government
b. the foregone output that would have been produced if those individuals were employed
c. the taxes that are passed along to individuals to pay for unemployment insurance
d. higher crime rates
e. the psychological costs associated with unemployment
B
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With no change in labor productivity, what would happen to the real wage rate and potential GDP if the population increased?
What will be an ideal response?
The main reason that firms adjust their output when the price level changes is that
a. uncertainty causes a drop in output. b. taxes cause a supply-side reaction. c. their profit margins change. d. increased risks lead to a change in output. e. All of the above are correct.
If firms are producing at a profit-maximizing level of output where the price is equal to the average total cost:
A. economic profits may be positive. B. economic profits must be zero. C. accounting profits may be negative. D. accounting profits must be zero.
Which of the following statements is consistently associated with the standard migration model?
A. The decision to move is expected to increase the household's overall utility. B. Return migration occurs only when the mover regrets having made the initial move. C. Moving for job reasons is always done at the expense of family desires. D. Repeat migration occurs only when the mover is moving for job-related reasons. E. Repeat migration occurs only when the mover regrets having made the initial move.