The towns of Jekyll and Hyde each have a labor force of 2,000 people. In Jekyll, 500 people were unemployed for the entire year, while the rest of the labor force was employed continuously. In Hyde, every member of the labor force was unemployed for three months and was employed for nine months. The average duration of unemployment spells over the year was ________ months in Jekyll and ________ months in Hyde.
A. 3; 9
B. 12; 3
C. 3; 3
D. 12; 9
Answer: B
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Economists differ in their views of the role of the government in promoting economic growth. A controversial idea is that government should
a. lend support to the invisible hand by maintaining property rights and political stability. b. lower barriers and impediments to free trade. c. encourage capital formation. d. target and subsidize specific industries important for technological progress.
When suspects are interviewed in different rooms, they do not know what the other suspects are going to do and hence seek the best deal for themselves. This illustrates:
A. the idea of a noncooperative game. B. that the police are not taking into account the suspects' rights. C. the idea of a cooperative game. D. that criminals are irrational.