If the natural rate of unemployment is 10% and 6% of employed workers become unemployed each period, then
a) the natural rate is declining
b) 4% of the unemployed remain unemployed each period
c) the labor force is expanding at a rate of 16%
d) the outflow from unemployment occurs at a rate of 54%
e) 60% of the unemployed find employment each period
d) the outflow from unemployment occurs at a rate of 54%
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A reason why rogue traders have bankrupt their banks is due to
A) the separation of trading activities from the bookkeepers. B) stringent supervision of trading activities by bank management. C) accounting errors. D) a failure to maintain proper internal controls.
The trade model described in the text demonstrates that countries can expand consumption by specializing in the production of goods and services in which they have a comparative advantage
In reality we do not see complete specialization in production. State three reasons why this is case.
When an exchange rate is established as a fixed peg, active intervention may be required to maintain the target-pegged rate
a. True b. False Indicate whether the statement is true or false
The key characteristics of a monopolistically competitive market structure include
A) many small (relative to the total market) sellers acting independently.
B) barriers to entry are strong.
C) all sellers sell a homogeneous product.
D) sellers have no incentive to advertise their products.