Explain what is meant by the terms "labor force," "unemployment rate," and "labor force participation rate."
What will be an ideal response?
The labor force comprises all workers who are currently employed and unemployed workers who are actively looking for work. The unemployment rate is the percentage of the labor force which is unemployed. The labor force participation rate is the percentage of the population over 16 years of age that is in the labor force.
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What do demand and marginal revenue curves look like in monopolistic competition? How do they compare to the demand and marginal revenue curves in perfect competition and monopoly?
What will be an ideal response?
Assuming that the median voter model accurately explains how public sector decision are made, resources will be allocated efficiently if _____
a. preferences are single-peaked and individuals prefer outcomes closer to their preferred outcome rather than outcomes farther away b. rational ignorance and cyclical majorities are not present c. resources were already allocated efficiently in the private sector d. the median voter's demand is the same fraction of total demand as his tax share is of total taxes
In 2000, many economists believed that the most serious macroeconomic problem confronting the U.S. economy was an inflationary gap. Which policies would be effective in dealing with this problem?
A. Increase transfer payments. B. Increase government purchases. C. Decrease personal income taxes. D. Increase personal income taxes.
Sheila and Jim live in an island where they are the only two workers. Sheila can either catch 10 fish or gather 40 pounds of berries each day, and Jim can either catch 8 fish or gather 24 pounds of berries each day. Both of them work 200 days per year. At current world prices 1 fish trades for 3.5 pounds of berries. In a closed economy, who has the comparative advantage in catching fish?
A. Sheila and Jim B. Sheila C. Jim D. Neither of them