Any supplement to consumer spending that increases domestic aggregate output and income is called a leakage
Indicate whether the statement is true or false
FALSE
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Unemployment insurance contributes to structural unemployment by:
A. allowing unemployed workers to search longer or less intensively for jobs. B. keeping wages above the market-clearing level. C. keeping wages below the market-clearing level. D. forcing unemployed workers to take the first job offered to them.
Consider the PPF for office buildings and housing shown in the figure above. Which point in the diagram shows that resources to produce office buildings and housing are being misallocated, unused, or both?
A) point F B) point G C) point H D) point I
If society were to maximize the utility of its best-off member, the final allocation would be
A) perfect equity. B) on the contract curve. C) Pareto-efficient. D) one in which one person gets everything.
"Unit elasticity of demand can be found everywhere along a straight-line demand curve with a slope of -1." Do you agree or disagree? Explain
What will be an ideal response?