If a large number of individuals file unemployment claims while working in the underground economy:
a. the unemployment rate overstates the level of unemployment
b. the unemployment rate understates the level of unemployment.
c. the accuracy of the unemployment rate is not affected.
d. discouraged worker statistics will underestimate the true state of frustration by job seekers.
a
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A 10 percent increase in price leads to a 20 percent decrease in the quantity demanded. The price elasticity of demand is equal to
A) 0.5. B) 1.0. C) 2.0. D) 20.0. E) 10.0.
The study quoted in the text demonstrated that calorie posting did not cause any significant changes in Starbucks revenue over all
Indicate whether the statement is true or false
The matching function exhibits all of the following properties except
A) diminishing marginal product of labor. B) constant returns to scale. C) increasing in matching efficiency. D) increasing in inputs of searching consumers and firms.
Robbery reduces economic efficiency by
a. creating voluntary exchanges b. decreasing government spending c. increasing unemployment d. creating involuntary exchanges e. lowering the number of potential Pareto improvements