The price an economy pays for lower unemployment is ______.
a. higher inflation
b. higher real wages
c. declining stock values
d. lower price volatility
a. higher inflation
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Suppose a consumer has determined that her reservation price, R, is $75. The expected benefit of an additional search at this reservation price is $25. Based on this information we can conclude that:
A. this consumer will accept any price below $75. B. search costs are $25 per search. C. search costs are $25 per search, and this consumer will accept any price below $75. D. this consumer will reject any price above $25.
Ultimately, the real burden of paying for Social Security benefits will be paid for by
A. taxes levied on workers. B. new federally issued Treasury bills. C. Social Security trust fund bonds. D. a new tax levied on businesses.
A Pigouvian subsidy
a. cannot achieve an efficient outcome b. is a per-unit payment on a good that is set equal to the marginal external benefit at QE c. achieves efficiency as long as it is set equal to the MEC at the competitive output level d. lowers the MPB vertically by the amount of the subsidy
When the use of a communally owned resource has no price, then people will
A. use too much of this resource. B. use less of the resource than usual. C. use another resource altogether. D. not use this resource.