According to Okun's law, if output grew 1% and full-employment output rose 3%, what would be the change in the unemployment rate?
A. 2 percentage points
B. -2 percentage points
C. 1 percentage point
D. -1 percentage point
Answer: C
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Providing training for unemployed individuals is primarily intended to reduce
a. frictional unemployment. b. seasonal unemployment. c. structural unemployment. d. cyclical unemployment.
What is the largest category in local government spending?
A. education B. public welfare C. health and hospitals D. fire protection
Some nations avoid the effects of trade deflection in a trade bloc by enforcing
A) trade deflection. B) trade diversion. C) quotas. D) rules of origin.
The free-rider problem is
A. the incentive that people have to avoid paying for a public good. B. that people cannot be forced to accept public goods. C. the incentive that people have once they are receiving welfare to keep getting welfare. D. the use of private goods in one state by residents of another state.