Which of the following explains why many European countries have unemployment rates that are higher than in the United States?
A) Technological change occurs at a faster rate in Europe, so structural unemployment is higher in Europe.
B) European countries offer higher unemployment benefits than the United States.
C) Firms in European countries offer employees higher wages and higher benefits than do firms in the United States.
D) The minimum wage in Europe is lower than it is in the United States.
Answer: B
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Which of the following statements was probably made by an adherent of rational expectations? a. It is rational to pursue any full employment policy because more employment is better than less
b. Unemployment is clearly a case of market failure. c. Programs designed to stimulate employment will only stimulate the price level with no employment gain. d. It is inhumane to have a single person unemployed whatever the inflation cost.
A firm's _______ shows the amount of output a firm can produce from given amounts of inputs using efficient production methods.
A. production possibilities set B. efficient production frontier C. production function D. production possibilities curve
Andrea would be considered unemployed if she is
a. working at a part-time job but is looking for a full-time job. b. absent from her regular job as the result of illness. c. working at a full-time job but is looking for a part-time job. d. not working and is looking for a part-time job.
As domestic income rises, net exports will tend to
a. fall, since exports remain the same but imports increase. b. rise, since exports remain the same but imports fall. c. fall, since exports are lower and imports remain the same. d. rise, since exports are higher and imports remain the same. e. may either rise or fall, since exports and imports change in opposite directions.