The unemployment rate is defined as the number of
A) unemployed people divided by the number of employed people.
B) unemployed people divided by the sum of the people employed and the people unemployed.
C) employed people divided by the number of people in the country.
D) unemployed people divided by the number of people in the country who are employed.
E) unemployed people divided by the number of people in the country.
B) unemployed people divided by the sum of the people employed and the people unemployed.
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Which of the following is NOT a reason that real GDP is a poor measure of a nation's economic welfare?
A) Real GDP omits measures of political freedom. B) Real GDP does not take into account the value of people's leisure time. C) Real GDP does not include the underground economy. D) Real GDP overvalues household production.
The first example used to explain comparative advantage used two countries (England and Portugal) and two goods (wine and cloth) to show that
A) each country would be better off from trade if it had an absolute advantage in producing one of the goods. B) each country would have a comparative advantage in the production of the good for which it had an absolute advantage. C) mutually beneficial trade was possible between two countries even if one had a comparative advantage in the production of both goods. D) mutually beneficial trade was possible between two countries even if one had an absolute advantage in the production of both goods.
A temporary supply shock that raises prices
A) will cause the real interest rate to rise in the long run. B) has no long-run impact on inflation and output. C) causes output to fall in the long run. D) causes inflation to rise in the long run.
What is the main reason for the failure of import-substitution strategies to generate rapid economic growth?
a. Deteriorating terms of trade b. Scarce natural resources c. Inefficient allocation of resources d. Lack of self-interested behavior by entrepreneurs e. Insufficient subsidies to domestic producers