In the Soviet Union, which boasted about giving every worker a job, some workers were given the task of digging holes and filling them again. What function of microeconomic analysis did this policy address?

A decrease in ________ tends to decrease ________ and therefore decrease ________

A) cost; price; supply B) cost; demand; price C) demand; price; cost D) supply; cost; price

Research by Richard Layard indicates that an increase in a country's level of output per capita will

A) always increase happiness in that country. B) always decrease happiness in that country. C) generally have no effect on happiness in that country. D) increase happiness in that country if output per capita is relatively low.