Why might the official measure of civilian unemployment in the U.S. be an understatement of actual unemployment?
a. Because some workers become discouraged and no longer are actively seeking work. Thus they are not officially counted in the labor force, and consequently are not officially unemployed.
b. Because the official measure of civilian unemployment fails to account for very high levels of unemployment among active-duty military personnel.
c. Because the statistics count part-time employment as being no different from full-time employment, even though many part-time workers would prefer to be fully employed.
d. Both a. and c. above are correct.
d
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The change in the quantity of capital from one period to the next is equal to
A) net investment. B) financial investment. C) gross investment. D) wealth. E) depreciation.
In a large open economy, an increase in ________ leads to ________
A) desired saving; an increase in the domestic interest rate B) desired investment; an decrease in the domestic interest rate C) desired saving; an increase in desired investment D) desired saving; a decrease in actual investment E) none of the above
One argument for trade barriers is that U.S. producers pay higher wages than many of their foreign counterparts and that trade restrictions are necessary to protect U.S. workers from unfair competition brought about by low wage rates abroad. Is this a valid argument for protection?
What will be an ideal response?
Suppose there is only one firm producing steel, one producing fiberglass, and one producing concrete. If steel and concrete are considered substitute goods in construction, while steel and fiberglass are considered substitute goods in auto production, there is no monopoly in the
a. steel market b. fiberglass market c. concrete market d. construction market e. boat market