Many economists have argued that labor market regulations in the European Union have stifled efficiency and held down potential GDP. If this argument is correct, the removal of these regulations should:
A. shift the aggregate demand curve out to the right.
B. not affect the aggregate supply or aggregate demand curves.
C. shift the long-run aggregate supply curve out to the right.
D. shift the short-run aggregate supply curve in to the left.
Answer: C
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If two countries specialize in the production of goods in which they have a comparative advantage, they can experience gains from trade
Indicate whether the statement is true or false
If the government sells certificates giving the certificate owner permission to emit a particular amount of pollution, and then allows these certificates to be bought and sold at a market price, then the government is using a market-based approach to pollution reduction called
A. command-and-control regulation. B. tradable pollution permits. C. mitigation. D. a carbon tax.
Firms bear the bulk of the payroll tax when labor supply is very inelastic.
Answer the following statement true (T) or false (F)
One reason why gold and silver coins have historically served as money is that: a. they are easily portable
b. they can be made of uniform size and quality. c. they can be divided if necessary for low prices. d. all of the above are correct.