The invention of machinery that can double the amount of gold extracted from raw ore will likely:
a. raise the world price of gold to pay for the new machinery
b. lower the world price of gold because any given amount can now be produced more cheaply.
c. raise the world price of gold because miners' wages must double as their productivity doubles.
d. lower the world price of gold only if new mining companies are not allowed to enter the industry.
b
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The amount of unemployment that policymakers should not worry about because it constitutes no social problem is
A) 2 percent of the labor force. B) 4 percent of the labor force. C) not any single amount that can be clearly measured. D) the amount that can exist without causing a recession. E) the amount that is due to people's choices among available alternatives.
Exemptions are better off for the taxpayer than deductions _____
a. only in the case of housing-related tax preferences b. when itemizing deductions c. when taking the standard deduction d. for high-income taxpayers