Why is the natural rate of unemployment higher in Europe than it is in the United States?
First, because social programs, which raise the opportunity cost of working, are less generous in the United
States than in Europe. Also, there are fewer governmental restrictions on firing or laying off workers in the
United States, which means American employers are less reluctant than European employers to hire new
employees.
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If a university begins a policy of permanently expelling any student caught cheating in any way, you would expect that: a. no students would cheat
b. fewer students would cheat. c. there would be no difference in the amount of cheating. d. minor cases of cheating would become a larger fraction of all cases of cheating attempted.
Assume that Country X and Country Y are trading partners and the exchange rates are fixed. If prices in Country Y rise, all of the following are expected to happen except
a. Country X will export more. b. Country Y will import more. c. Net exports will rise for Country X. d. Trade will boost Country Y GDP.
Which of the following is not a consequence of above-equilibrium wages in a labor market?
a. a surplus of labor b. unemployment c. more unionized jobs d. All of the above are consequences of above-equilibrium wages.
When Henry Ford doubled his worker's wages in 1914, he was implicitly recognizing
A. the wage-price flexibility concept. B. say's Law. C. the paradox of thrift. D. the real balance effect.