What effect does the payment of government unemployment insurance have on the unemployment rate?
What will be an ideal response?
The payment of government unemployment insurance likely raises the unemployment rate. The unemployment insurance payments lower the opportunity cost (the salary that the unemployed are giving up by not working) of continuing to search for a job, which leads the unemployed to spend more time searching for a job.
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If a person is taxed $100 on an income of $1,000 . taxed $220 on an income of $2,000 . and taxed $390 on an income of $3,000 . this person is paying a(n):
a. progressive tax. b. poll tax. c. regressive tax. d. excise tax. e. proportional tax.
Suppose that for a given good demand increases and supply decreases at the same time. If demand increases by a lesser amount than supply decreases, then equilibrium price __________ and equilibrium quantity __________ for that good
A) rises; falls B) falls; falls C) rises; rises D) falls; rises