What is the opportunity cost of unemployment for an economy? What social problems have been linked to higher rates of unemployment?
What will be an ideal response?
The opportunity cost of unemployment is the production of goods and services that could have been produced if the unemployed workers would have worked. Besides forgone production, unemployment has been linked to a number of social problems such as crime, political unrest, depression, heart disease and other illnesses.
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A legal barrier is created when a firm
A) has economies of scale, which allow it to produce at a lower cost than two or more firms. B) is granted a public franchise, government license, patent, or copyright. C) produces a unique product or service. D) produces a standardized product or service. E) has an ownership barrier to entry.
For the average person, insurance is
A. not a gamble. B. a useless option. C. a fair gamble. D. an unfair gamble.
The equilibrium wage in a local labor market is $10 per hour. If a minimum wage of $15 per hour is imposed, which of the following will occur?
A) There will be an increase in unemployment. B) There will be an increase in the quantity of labor demanded by firms. C) There will be a decrease in the quantity of labor supplied by households. D) All of the above will occur.
The Federal Reserve affecting the supply of money is known as
A. growth policy. B. supply side policy. C. monetary policy. D. fiscal policy.