Of the following, what is the best example of structural unemployment?
a) a computer programmer who quits her job to move to a warmer climate
b) a construction worker who loses his job in the winter
c) an auto worker who loses her job during a recession
d) a steel worker who is replaced by a robot
e) a toymaker who worked for a company that closed because consumers did not buy its toys
Ans: d) a steel worker who is replaced by a robot
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________ refers to alternating periods of economic expansion and economic recession in an economy
A) Fiscal policy B) Labor productivity C) The business cycle D) Positive economic analysis
The rate of unemployment that occurs when the economy is producing its potential GDP _____
a. is called the natural rate of unemployment b. is zero c. is thought to be approximately 10% d. can be kept at zero through fiscal policy e. is equal to the rate of stagflation in most years
The addition to total physical product when one more unit of capital (or loanable funds) is used in production is called
a. marginal physical product of capital b. marginal revenue product of capital c. marginal use of loanable funds d. interest e. depreciation
Rebel Records announces it is cutting the prices of its bluegrass album titles by 25 percent. If Rebel is seeking to increase revenues, it must believe that the elasticity of demand for bluegrass albums is
a. elastic. b. inelastic. c. of unitary elasticity. d. perfectly inelastic.