Which of the following does not describe a characteristic of short-term economic fluctuations?
A. Expansions and recessions are felt in only a few sectors of the economy.
B. The unemployment rate rises during recessions.
C. Durable-goods industries are more sensitive to short-term fluctuations than service and non-durable industries.
D. Expansions and recessions are irregular in length and severity.
Answer: A
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A method of valuing a life that estimates how much money it takes to get the typical person to bear an additional risk of death is called the
A) lost-income approach. B) compensating differential approach. C) daredevil approach. D) price-is-right approach.
Suppose that flu shots create a positive externality equal to $8 per shot. Further suppose that the government offers a $6-per-shot subsidy to producers. What is the relationship between the equilibrium quantity and the socially optimal quantity of flu shots produced?
a. They are equal. b. The equilibrium quantity is greater than the socially optimal quantity. c. The equilibrium quantity is less than the socially optimal quantity. d. There is not enough information to answer the question.