Suppose Canada has a population of 30 million people, and a labor force participation rate of 2/3. Furthermore, suppose the natural rate of unemployment in Canada is 7%. If the current number of unemployed people is 1 million people, what can we conclude about Canada's economy?
A. There is no frictional unemployment present in the economy.
B. The unemployment rate is below the natural rate of unemployment.
C. There is cyclical unemployment present in the economy.
D. The unemployment rate is above the natural rate of unemployment.
Answer: B
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It was once common for people to have servants who helped with the cooking and cleaning. Use the cost disease of the personal services dilemma to explain why these services have declined, even though one would expect an increased use in this age of the two-worker household.
What will be an ideal response?
As we work fewer hours and our leisure time increases, the opportunity cost of labor
A. Rises and the marginal utility of income rises. B. Falls and the marginal utility of income falls. C. Falls and the marginal utility of income rises. D. Rises and the marginal utility of income falls.
As the price of a product falls, the demand for the product increases, ceteris paribus.
Answer the following statement true (T) or false (F)
Which of the following is NOT a positive statement?
A) The unemployment rate is 5.8 percent. B) The inflation rate for 2002 was 2.3 percent. C) The national debt is too high. D) The federal government budget for 2004 is $2.2 trillion.