Define the “full-employment” or “natural” rate of unemployment and give its approximate percentage rate as economists currently define it.
What will be an ideal response?
“Full employment” does not mean zero percent unemployment, but refers to that part of unemployment viewed as being unavoidable. This is generally the sum of frictional and structural unemployment and today is generally believed to be 4 to 5 %.
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A savings account is an example of consumer income.
Answer the following statement true (T) or false (F)
A stockholder ________ an owner of the firm, and a bondholder ________ an owner of the firm
A) might be; is not B) is; is not C) is not; is D) is not; is not E) is; is
When the Federal Reserve purchases treasury securities in the open market,
A. The sellers of such securities by new securities in the open market and there is an increase in bank reserves B. The sellers of such securities deposits the funds in their banks and bank reserves increase C. The buyers of those securities pay for them with checks drawn on their bank account and bank reserves increase
When tastes are not quasilinear, the positive economist will introduce error into the analysis if he uses the uncompensated (rather than the compensated) demand curve to analyze changes in consumer surplus.
Answer the following statement true (T) or false (F)