If the rate of job finding equals 7%, and the rate of job separation equals 1%, then the natural rate of unemployment is
A) 7%.
B) 8.75%.
C) 12.5%.
D) 14.3%.
C
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In the figure above, if the minimum wage is $4 per hour, then
A) the quantity of labor supplied is less than the quantity of labor demanded. B) the quantity of labor supplied is 4 million hours and the quantity of labor demanded is 2 million hours. C) unemployment is 1 million hours. D) the quantity of labor supplied is 3 million hours and the quantity of labor demanded is 3 million hours.
A closed economy is one in which
A) investment spending is zero. B) government spending is zero. C) there are no imports or exports. D) demand equals supply in every market.
Which of the following is one common criticism of capitalism?
a. Poor product quality and little product diversity. b. Inefficiency of nationalized industries. c. Inability to adjust quickly to changing economic conditions. d. Inadequate environmental protection.
Difference in wages can be explained by differences in
a. job characteristics and worker characteristics. b. job characteristics but not worker characteristics. c. worker characteristics but not job characteristics. d. neither worker characteristics or job characteristics.