The natural rate of unemployment is closely associated with the short-run ups and downs of economic activity

The inefficiency for collective consumption goods stems from the fact that _____

a. the total cost of the good is too high b. the marginal cost of the good is zero c. the total cost of the good is zero d. the good cannot be priced because it is too easy to steal

Which of the following is a positive side effect of business start-ups and the business failures that often follow?

a. The process makes it possible to try out numerous new ideas, and some of them will substantially improve our lives. b. The process increases total employment, and leads to a lower rate of unemployment. c. The process generates additional revenue for the government, which will then be used to produce goods and services that people value. d. This is a trick question. There are no positive side effects of business failures.