In recent economic history, the U.S. federal budget was in surplus from

Which of the following is NOT an example of a way in which microeconomic analysis can help in designing environmental policy?

A. Examining the trade-offs between ecological benefits of environmental legislation and its impacts on consumers' standard of living B. Lobbying consumers and firms to reduce consumption of energy C. Designing laws to provide incentives for firms to implement clean technologies in new vehicles D. Determining the optimal level of vehicle fuel efficiency standards

In the classical model, what occurs if a wage of $20/hour results in unemployed workers?

A) The wage rate will drop, more workers will be hired, and the unemployment rate falls. B) Producers will quickly create more jobs and hire the unemployed workers, so unemployment is short-lived. C) The workers will go on strike to demand that more jobs be created. D) The government will step in and order firms to hire more workers.