Assume an economy experiences, for a given period, a 5% increase in output and a 1% increase in productivity. Given this information, we know that which of the following occurred for this economy during this period?
A) The unemployment rate increased during this period.
B) The unemployment rate decreased during this period.
C) The unemployment rate did not change during this period.
D) The effects on the unemployment rate are ambiguous.
E) none of the above
B
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Which of the following statements is true? a. Externalities can never refer to costs borne by the seller
b. Both external costs and external benefits can never exist for the same good. c. Externalities can never lead to under-production of a specific good. d. External benefits can never exceed external costs.
An American soldier stationed in North Carolina receives a paycheck from the federal government for $300, which she uses to purchase a $100 MP3 player made in China by a Chinese firm and $200 for fruit and vegetables from a local farmers market. As a result, U.S. GDP increases by
a. $200. b. $300. c. $500. d. $600.