An economist argues that the states that have spent the most on higher education in the last 25 years have experienced the least economic growth. One might conclude that higher education:
A. is a nonexcludable service.
B. does not have important negative externalities.
C. has problems of adverse selection.
D. does not have important positive externalities.
Answer: D
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When a country allows trade and becomes an exporter of goods both domestic consumers and domestic producers benefit
a. True b. False Indicate whether the statement is true or false
Paul, an out-of-work coal miner in the Appalachian Mountains, has recently quit looking for work after having tried for two years. Since he was already included as an unemployed worker, Bureau of Labor Statistics (BLS) unemployment statistics will be unaffected by his decision
Indicate whether the statement is true or false
Changes in labor productivity, changes in the quality of labor, and changes in the price of labor are three factors that explain why labor costs eventually
a. increase at a decreasing rate b. increase at an increasing rate c. decrease at an increasing rate d. decrease at a decreasing rate e. become constant
International capital flows strengthen
A. monetary policy and have no effect on fiscal policy. B. monetary policy but weaken fiscal policy. C. monetary and fiscal policy. D. fiscal policy but weaken monetary policy.