Which of the following is the most likely cause of a recession according to the real business cycle model?
a. an unanticipated change in the money supply.
b. an increase in taxation, government spending, and regulation.
c. a fall in expected profits.
d. an anticipated change in the money supply.
e. none of the above.
B
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In the United States, the wage floor legislated by government below which it is generally illegal to pay workers is known as
A) the minimum wage. B) the wage ceiling. C) the employment gap. D) the going wage.
Which of the following statements is false?
A. Government can remove individuals from a prisoner's dilemma setting and make them better off. B. In a prisoner's dilemma setting, it is impossible for the government to define and enforce property rights that the individuals involved in the setting want to have defined and enforced. C. As long as government charges each individual in a prisoner's dilemma setting a tax that is less than the gain received by being removed from the setting, then government has made the individuals better off. D. Depending upon the amount of the tax charged to each individual in a prisoner's dilemma setting, the government can make both persons better off, both persons worse off, or one person better off and the other person worse off.