What causes structural unemployment?
a. workers searching for suitable jobs and firms looking for suitable workers
b. the persistent mismatch of workers’ skills and the requirements of jobs
c. short-term cyclical fluctuations in the economy
d. short-term seasonal fluctuations in the job market
b. the persistent mismatch of workers’ skills and the requirements of jobs
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When consumption spending is greater than disposable income, we know with certainty that we have
A) dissaving. B) negative net investment. C) excess thrift. D) positive savings.
Over the past 70 years, which of the following has occurred?
i. The service sector has grown so that now about 80 percent of workers are now employed in the service industry. ii. The manufacturing sector has shrunk, so now about 20 percent of workers are now employed in the production of goods. iii. The percentage of workers employed in the service industry has increased steadily. A) i, ii and iii B) i and iii C) ii only D) i only E) ii and iii
Refer to above figure. If trade were to open up between P and R, where would the world terms of trade locate in the figure above (somewhere on the PC/PF axis)? Would relative wages (w/r) in the two countries become equal? Is this consistent with the
Heckscher-Ohlin model? Explain.
People sometimes act differently in different settings. An economist is likely to explain this by saying
A) the benefits and costs of certain behaviors can be different in different settings. B) people are hard to figure out. C) people behave as others behave. D) it is hard to figure out what makes people tick. E) none of the above