Evidence suggests that education raises the earnings of the workforce mainly by
a. teaching workers how to demand more pay.
b. keeping young people out of the labor force, thereby reducing the supply of labor.
c. increasing the marginal productivity of labor.
d. teaching people to read and write, although education beyond this point does not seem to increase worker productivity.
c. increasing the marginal productivity of labor.
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The unemployment rate is equal to
A) (number of unemployed people ÷ number of employed) × 100. B) (number of employed people ÷ labor force) × 100. C) (number of unemployed people ÷ labor force) × 100. D) (number of unemployed people ÷ working-age population) × 100. E) (labor force ÷ population) × 100.
If the inflation rate is zero, the nominal interest rate is
A) greater than the real interest rate. B) positive and the real interest rate is negative. C) equal to the real interest rate. D) less than the real interest rate. E) equal to the inflation rate.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point A to Point D. This could be explained by
A. an increase in economic growth. B. a change in society's preferences for motorcycles versus hybrid cars. C. a reduction in unemployment. D. an improvement in technology.
How did the Fed use the Federal funds rate to respond to the mortgage default crisis?
What will be an ideal response?