If the U.S. government decides to distribute surplus cheese to food banks for the homeless, the government is addressing the question of
a. which goods and services should be produced with society's scarce resources
b. what production methods should be used to produce goods and services
c. how will output be allocated among the individuals in the society
d. what prices will be charged for goods and services
e. determining the optimal degree of specialization
C
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Tyler was fired when a machine took over his duties. He is so frustrated that he has decided to wait a few months before looking for a job. What type of unemployment is he?
a. frictional b. natural c. not unemployed d. structural
Answer the following statement true (T) or false (F)
1) An increase in demand accompanied by an increase in supply will increase the equilibrium quantity, but the effect on equilibrium price will be indeterminate. 2) A government subsidy per unit of output increases supply. 3) Consumers buy more of normal goods as their incomes rise. 4) Toothpaste and toothbrushes are substitute goods.