A major reason for the increase in school attendance by children between 1999 and 2015 throughout the world was:
A. the creation of labor laws forbidding child labor.
B. the abolishment of school fees.
C. the imposition of legislation that forced children to become educated.
D. an increase in the minimum wages adults could earn.
Answer: B
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Full employment is not considered to be zero unemployment because
A) some people do not want a job. B) there are not enough jobs for everyone who wants one. C) some cyclical unemployment always exists. D) people do not find jobs instantaneously.
With respect to labor supply, the substitution effect takes account of the point that at higher wage rates
A) a person can afford to take more leisure. B) leisure has become less expensive and so a person consumes less leisure. C) there are no factors inducing a person to work less. D) leisure has become more expensive and so a person consumes less leisure.
________ will cause a movement along the modern Phillips curve
A) An increase in oil prices B) An increase in the price of imports C) Wage agreements that include compensation for inflation D) all of the above E) none of the above
Refer to Scenario 10.6. If red rubber balls can be produced at any of the three plants, and John decides to produce 1 red rubber ball, at which plant will he produce it?
A) California B) Florida C) Montana D) He is indifferent between California and Florida. E) He is indifferent between Florida and Montana.