Suppose there are 4 million people in an economy that are classified as unemployed. After a more thorough investigation, it becomes obvious that 200,000 of these people are actually phantom unemployed. As a result of this discovery, the unemployment rate will
A. Remain unchanged until the unemployed find a job.
B. Decrease.
C. Increase initially but decrease when the phantom unemployed receive unemployment benefits.
D. Increase.
Answer: B
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The M1 definition of the money supply includes:
a. coins and currency in circulation. b. coins and currency in circulation and checkable deposits. c. Federal Reserve notes, gold certificates, and checkable deposits. d. Federal Reserve notes and bank loans.
A plumber who quits his job in Indianapolis and moves to Orlando where additional plumbers are needed is said to be ___________________ unemployed
A) frictionally B) structurally C) cyclically D) underemployed
The following data show the relationship between the number of drivers who leave for work at 8 a.m., their average commute time, and their marginal benefit of commuting. Number of DriversWho Leave at 8 a.m.AverageCommute TimeMarginalBenefit10030 minutes$1020065 minutes$8300110 minutes$4400170 minutes$3500260 minutes$1If commuters view highway use as having a price of zero, then one can predict that ________ drivers will leave for downtown at 8:00 a.m.
A. 200 B. 500 C. 400 D. 300
A profit-maximizing firm in a competitive market will continue to hire more workers when
A. the marginal factor cost is less than the marginal revenue product of the additional workers. B. the marginal factor cost is less than zero. C. the marginal factor cost equals the marginal revenue product of the additional workers. D. the marginal factor cost exceeds the marginal revenue product of the additional workers.