When production of a good provides external benefits, there will be
a. too few resources devoted to its production.
b. too many resources devoted to its production.
c. the optimal amount of resources devoted to its production.
d. abnormally high profits earned by producers of the good.
A
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The unemployment rate can remain below the natural rate, but only _____
a. in the long run b. with continuous deflation c. with a continuously increasing inflation rate d. with a series of adverse supply shocks e. if the money supply is constant
The final element of a financial crisis is
a. an economic downturn. b. a decline in confidence in financial institutions. c. declining prices of real estate or other assets. d. a vicious circle.
The term "capital," as used in macroeconomics, refers to
What will be an ideal response?
A friend wants to learn how a nation's unemployment rate is calculated and how it changes over time. He asks you which economics course to take and you advise him to enroll in
A) macroeconomics. B) microeconomics. C) either micro- or macroeconomics. They both concentrate equally on those issues. D) political science because economics doesn't address those topics in its courses.