Could the advent of the Internet completely eliminate frictional unemployment?
What will be an ideal response?
While the Internet can improve the exchange of information, that is not enough to reduce frictional unemployment to zero. Some workers, for example, would prefer to continue searching for jobs in their own area rather than moving across the country to seek another job. In fact, improving information flows could even have a negative effect of informing workers of other opportunities in the economy and thereby leading to more of them quitting their current jobs to seek other employment!
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Assuming that full employment of labor is considered 5 percent unemployment, in 1998 and 1999, the United States economy operated ____________ the production possibilities frontier.
Fill in the blank(s) with the appropriate word(s).
Economists agree that a monopolistically competitive market structure
A) can eliminate any excess capacity if all firms in the industry devote more funds to differentiating their products. B) lowers consumer utility because consumers pay a price higher than the marginal cost of production. C) is detrimental to society because it leads to a waste of scarce resources. D) benefits consumers because firms produce products that appeal to a wide range of consumer tastes.
Price ceilings lead to market surpluses
a. True b. False Indicate whether the statement is true or false
The balance of payments is the domestic price of a foreign currency.
Answer the following statement true (T) or false (F)