One reason that education has external benefits is that
A) knowledge has diminishing marginal productivity.
B) education creates job opportunities for teachers.
C) education creates better citizens.
D) property owners pay taxes to support the school system.
C
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If the euro per dollar exchange rate changes from $1 = 0.8 euros to $1 = 0.7 euros, it implies that the euro has depreciated against the dollar
a. True b. False Indicate whether the statement is true or false
Elasticities of demand for labor and for the good that is being produced are related because
a. the MRP curves reflect the demand elasticity of the good b. unions try to raise demand elasticities c. monopsonists are always monopolists d. it is a company town e. there is one price for both
What is the labor force? Employed 1000 Unemployed 500 Not in labor force 600
What will be an ideal response?
According to the Ricardian equivalence theorem, government deficits do not affect the level of output because people:
A. recognize that current deficits must be paid in the future and therefore increase savings today to pay higher future taxes. B. know that current deficits must be paid in the future and therefore reduce savings today. C. recognize that current deficits must be paid by future generations and therefore spend more today. D. do not understand the relationship between deficits and aggregate demand.