Suppose each of the following rows represents the choice faced by policy makers given the current set of U.S. institutions and technology. What is the opportunity cost of reducing unemployment from 8 percent to 4 percent?UnemploymentInflation103846557410
A. 4 percentage points of unemployment
B. 4 percentage points of inflation
C. 6 percentage points of inflation
D. 6 percentage points of unemployment
Answer: C
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Individuals who are not working and are not actively looking for work are counted as unemployed if they have looked for work in the past
Indicate whether the statement is true or false
A gallon of milk costs $4 in Bonland. If the government fixes the price at $3.50, ________
A) the quantity demanded of milk will fall B) the quantity of milk supplied will increase C) a shortage of milk will occur in the market D) there will be an excess supply of milk in the market
Public choice analysis
a. assumes individuals in the public sector seek to serve the public interest rather than their own personal interests. b. is the study of the decision making of individual actors (such as voters, politicians, and bureaucrats) in the public sector. c. suggests that individual voters have a greater incentive to become informed when making choices among political candidates than when making choices about the products they consume. d. finds that the individuals managing government agencies generally have a much stronger incentive to be efficient than do individuals managing private businesses.
Explain how
(i) a risk-averse individual, (ii) a risk-neutral individual, and (iii) a risk-preferring individual would respond to the opportunity of placing a bet at fair odds.