Sam worked for 12 years as a coal miner. When the mine close…
Sam worked for 12 years as a coal miner. When the mine closed permanently, his particular skills were not in demand in his region. Retraining programs are available but the mismatch between what he knows and what local employers want has kept him out of work for over a year. Which type of unemployment best describes Sam’s situation?
Read DetailsTwo countries face the same three basic economic questions —…
Two countries face the same three basic economic questions — what to produce, how to produce it, and for whom. Country X uses primarily decentralized decision-making, with buyers, sellers, and private firms making most of the choices through prices. Country Y uses primarily centralized decision-making, with government agencies setting production targets and allocating resources. Which best describes the two economies?
Read DetailsTwo friends each earn $50,000/year. Alex starts contributing…
Two friends each earn $50,000/year. Alex starts contributing $200/month to a retirement account at age 22 and stops at age 32 (ten years of contributions, $24,000 total). Casey waits until age 32 and then contributes $200/month every month until age 62 (thirty years of contributions, $72,000 total). Both accounts earn a steady 6 percent per year. Assuming those contribution levels and returns hold, which best captures the Chapter 17 lesson?
Read DetailsA university-town resident is deciding how many hours to vol…
A university-town resident is deciding how many hours to volunteer as an adult literacy tutor. Each hour brings the resident $10 of personal satisfaction (private benefit) and generates about $30 of value to the tutored adults and the community (social benefit exceeds private benefit). If the resident chooses volunteer hours based only on personal satisfaction, which comparison is correct?
Read DetailsA steel mill emits pollution that causes about $25 per ton o…
A steel mill emits pollution that causes about $25 per ton of external damage. Before any policy, the mill produces 1,000 tons per week at a private cost that ignores the damage. The government now imposes a Pigouvian tax of $25 per ton. Which prediction best fits Chapter 12?
Read Details