What is Okun’s law? Give an example of how it works.
What will be an ideal response?
Okun’s law refers to the relationship between the unemployment rate and the GDP gap which was quantified in studies done by the economist Arthur Okun. His studies indicated that for every 1 percent that the actual unemployment rate exceeds the natural unemployment rate, there is a negative 2 percent GDP gap. If the actual unemployment rate was 7.5 percent and the natural rate was 5.5 percent, then there would be a negative 4 percent GDP gap. Thus, the ratio is 1:2 in terms of unemployment rate–GDP gap link.
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The Landrum-Griffin Act was designed to
a. protect workers from union abuses and criminal activities b. eliminate racial and sexual discrimination by unions c. require firms to bargain in good faith with unions d. prohibit the union shop e. stop unions from striking in support of other unions' strikes
?Econlit is an online search service which allows users to do a comprehensive search of almost all economics journals.
Answer the following statement true (T) or false (F)
The formula for MC is
A. q/TVC. B. TVC/q. C. ?TVC/q. D. ?TVC/?q.
If labor productivity in a copper mine is 2.5 tons per worker, then 200 copper miners with a fixed amount of capital produce
A. 125 tons. B. 275 tons. C. 450 tons. D. 500 tons.