Compare and contrast the arguments favoring active versus passive policy making
What will be an ideal response?
The models that stress wage and price flexibility and rationality on the part of economic agents tend to favor passive policy making. If people can anticipate policy actions and if wages and prices are flexible, the economy will tend toward long-run equilibrium. Discretionary policies conducted by governmental policy makers will not be effective means of influencing real Gross Domestic Product (GDP). In contrast, economists who conclude that small menu costs are important elements of real-world economies conclude that active policy making can influence real GDP and move the economy toward full employment.
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How can technology help mitigate the effects of climate change?
What will be an ideal response?
Which of the following about employment discrimination is true?
a. Employers who discriminate against blacks and other minorities will have lower costs than rival firms that hire employees strictly on the basis of productivity. b. After adjusting for factors such as education, experience, and location, the earnings of black men are almost identical to the earnings of white men. c. If minority and white employees in a skill category are equally productive, the profit motive provides employers with a strong incentive to hire minority employees if they are available at a lower wage. d. The empirical evidence indicates that the earnings gap between whites and blacks is entirely the result of worker preference.