One major reason that economists are concerned about unemployment is that
A. unemployment reduces the size of the labor force.
B. the economy is producing less output than if there were full employment.
C. unemployment always leads to frictional unemployment.
D. unemployment shifts the production possibilities curve outward.
Answer: B
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A country must have absolute advantage in a good in order to have comparative advantage in that good
Indicate whether the statement is true or false
If we compare income mobility in absolute terms, we would measure whether a person's income:
A. is higher than her parents' income. B. places her higher up in the income distribution than her parents' income. C. is higher at the end of her career compared to the beginning. D. places her higher up in the income distribution over the course of her work-life.
Suppose the interest rate is 7 percent. Consider four payment options: Option A: $500 today. Option B: $550 one year from today. Option C: $575 two years from today. Option D: $600 three years from today. Which of the payments has the highest present value today?
a. Option A b. Option B c. Option C d. Option D
The ________ economists would have the government do absolutely nothing during a period of relatively high unemployment.
Fill in the blank(s) with the appropriate word(s).