Why does unemployment tend to change when the level of output changes?
A. Persons wish to buy things, and if output falls, people need to work less to earn the income to buy the smaller output.
B. Labor is an input, and if output falls, employers need fewer workers to make it, so the employment falls.
C. As output rises, more people are more interested in buying goods and services, and so these people work more to obtain the income needed to buy things.
D. Persons face the option of buying or working, so that when they do more of one, the other necessarily falls.
E. When companies replace workers with machines, output rises and people take more vacation time prior to returning to work.
Answer: B
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In the game in Scenario 13.7, the strategy pair that pays
A) $69,000 to each player is the only equilibrium. B) ($0, -$1000 ) is the only equilibrium. C) (-$1000, $0 ) is the only equilibrium. D) $0 to each player is the only equilibrium. E) $69,000 to each player and the strategy pair that pays $0 to each player are equilibria.
The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that
a. most economists do not regard the availability of natural resources as a determinant of productivity. b. the quantity of natural resources does not enter into any production function. c. inflation-adjusted prices of most natural resources have been stable or fallen over time. d. inflation-adjusted prices of most natural resources have risen over time.