The natural rate of unemployment is defined as the rate of unemployment that
A) exists only during periods of recession or depression in the economy.
B) exists due to welfare and unemployment benefits that reduce potential workers' incentives to find work.
C) prevails in long-run macroeconomic equilibrium, when all workers and employers have fully adjusted to any changes in the economy.
D) prevails in the short-run macroeconomic equilibrium, before workers and employers have had a chance to adjust to an economic shock.
C
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In a small European country, it is estimated that changing the level of capital from $8 million to $10 million will increase real GDP from $2 million to $3 million
If the number of hours worked in the labor force does not change, what does this information tell you about the slope of the per-worker production function in this range? A) The slope is -2. B) The slope is 1/2. C) The slope is 2. D) The slope is 4.
The division of productive activities among persons and regions so that no one individual or area is totally self-sufficient is known as
A) advantage-taking. B) comparative value. C) specialization. D) outsourcing.
The market supply curve for a product:
A. is the supply of an individual consumer. B. will lie to the right of all of the individual supply curves for a product. C. graphically is the vertical sum of the individual supply curves. D. will lie above all of the individual supply curves for a product.
Suppose that only one curve shifts. If you observe that the equilibrium price and equilibrium quantity decreased, then the market experienced a(n):
A. decrease in supply. B. increase in demand. C. increase in supply. D. decrease in demand.