Answer the next question on the basis of the following information about a hypothetical economy.Full-time employed = 80 Part-time employed = 25 Unemployed = 15 Discouraged workers = 5 Members of underground economy = 6 Consumer price index = 110If the members of the underground economy are presently counted as part of the unemployed when in fact they are employed, the official unemployment rate is overstated by about
A. 6 percentage points.
B. 0 percentage points.
C. 2 percentage points.
D. 5 percentage points.
Answer: D
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Which of the following is included in "compensation of employees" part of the income approach to measuring GDP? I. Wages and salaries. II. Pension fund contributions. III. Social Security contributions
A) I only B) I and II C) I and III D) I, II and III
Which of the following statements about quotas is correct?
a. They benefit domestic consumers through lower prices. b. They benefit domestic producers through higher prices. c. They raise world output. d. They cause outward shifts in the domestic and foreign production possibilities frontiers. e. They benefit domestic producers through increased competition that stimulates innovation.
Suppose that the table shown shows the demand and supply schedules for pork bellies. Which of the following statements is true?Price($/lb.)Quantity demanded (lbs.)Quantity Supplied (lbs.)$0.1030,0005,000$0.2025,00010,000$0.5020,00020,000$0.7515,00030,000$0.955,00040,000
A. There would be a shortage of pork bellies if the price were $0.25 per pound. B. There would be a shortage of pork bellies if the price were $0.50 per pound. C. There would be a surplus of pork bellies if the price were $0.25 per pound. D. There would be a surplus of pork bellies if the price were $0.50 per pound.
If regulators force a natural monopoly to price as a perfectly competitive firm would, the natural monopolist
A. will experience a rise in long-term average costs. B. will experience a lower marginal cost. C. will expand its output. D. will earn an economic loss.