Which of the following is the best measure of size of government as a share of the economy?
A) total government expenditures as a percentage of GDP
B) the supply of money as a percentage of GDP
C) public consumption plus private investment as a percentage of GDP
D) private consumption as a percentage of Gross Domestic Product
A) total government expenditures as a percentage of GDP
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Suppose an economy has the following characteristics: 100 people in the noninstitutional population; 40 people employed; 50 people not in the labor force. How many people are unemployed?
A) 100 B) 90 C) 50 D) 40 E) 10
Cyclical unemployment refers to unemployment resulting from
a. a mismatch of skills b. being in the wrong location at the wrong time c. the time and monetary cost of finding the best job d. climatic changes in weather affecting employment, such as agriculture and fishing e. periodic declines in business activity.
From 1973 to 1995, the growth rate of labor productivity in the United States was approximately
A. ?0.8 percent. B. 1.4 percent. C. 2.9 percent. D. 5.1 percent.
Answer the following statements true (T) or false (F)
1. When there is allocative efficiency in a market, the buyers' maximum willingness to pay for the last unit traded is equal to the sellers' minimum acceptable price for that unit. 2. When the total consumer and producer surplus is at a maximum, the deadweight loss in the market is zero. 3. Excludability means that when someone is consuming a good, then others are excluded from using the good anymore. 4. Nonrivalry in the use or consumption of a good means that only one person is consuming the good without any rivals.