Other things equal, which of the following will lead to an increase in output and employment?
A) The federal government decides to eliminate the Department of Education.
B) The federal government implements a national value-added tax (VAT).
C) The federal government passes a tax incentive for firms that employ returning war veterans.
D) The federal government reduces the duration and amount of unemployment benefits.
C
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All else equal, as the labor supply increases, the marginal product of labor will
A) increase at an increasing rate. B) increase at a decreasing rate. C) decrease at an increasing rate. D) decrease at a decreasing rate.
In Latavia, cultural pressures cause voluntary donations to orphanages to be very large; in Slobovia, people make smaller donations. If the governments of both countries suddenly grant a tax break to those donating money to orphanages, the basic postulate of economics predicts that donations
What will be an ideal response?
The lag between the time at which a policy is put in place and the time that policy affects the economy is called
A) the recognition lag. B) the impact lag. C) the implementation lag. D) the theoretical lag.
Our natural unemployment rate is most closely related to
A. frictional unemployment. B. seasonal unemployment. C. structural unemployment. D. full employment.