Refer to the diagram above. The straight line E drawn through the wavy lines would provide an estimate of the:
A. Recession fluctuation
B. Economic growth trend
C. Natural rate of unemployment
D. Recovery trend
B. Economic growth trend
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The law of diminishing marginal product is a statement
A) that concerns changes in variable input and changes in output. B) that concerns the long run. C) that concerns changes in profits. D) that relates to plant size.
A software firm moves its headquarters from California to Ireland. The CFO of the software firm is given the opportunity to move to Ireland. He turns down this opportunity because he does not want to move out of the country. While he is searching for a new job within the United States he would be classified as
A. structurally unemployed. B. cyclically unemployed. C. frictionally unemployed. D. not in the labor force because he turned down the opportunity to relocate.
In some developing countries, labor productivity has remained stagnant or fallen because
a. the capital stock has grown at about the same rate or more slowly than the population b. the capital stock has grown faster than the population c. the population has decreased d. foreign labor has been utilized e. wages have dropped
Inflation costs are minimized during periods of a. hyperinflation
b. large, unexpected deflation. c. moderate inflation. d. rapid money growth.