Suppose that an anti-smoking campaign in Moscow, Russia, is successful so that Muscovites smoke less and chew gum more. Tobacco companies lay off workers, while chewing gum manufacturers employ more workers. This is an example of
a. structural unemployment created by efficiency wages.
b. structural unemployment created by sectoral shifts.
c. frictional unemployment created by efficiency wages.
d. frictional unemployment created by sectoral shifts.
Ans: d. frictional unemployment created by sectoral shifts.
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Suppose the observed annual quantity of steel exchanged in the European market is 30 million metric tons, and the observed market price is 90 euros per ton. If the price elasticity of demand for steel is -0.3 in Europe, what is an appropriate value for the price coefficient (b) in a linear demand function ?
A. b = -0.9 B. b = 0.9 C.b = 0.1 D. b = -0.1
Which of the following activities can give rise to a positive externality?
A) Jogging every morning B) Getting a flu vaccination C) Consuming herbal products D) Buying a pair of gloves