A capital outflow occurs when:
A. money saved domestically is invested in another country.
B. money saved in another country finances domestic investment.
C. there is a negative difference between capital inflows and capital outflows for a country.
D. there is a positive difference between capital inflows and capital outflows of a country.
A. money saved domestically is invested in another country.
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In the table above, what is the level of unemployment (in millions of workers) if the minimum wage is set at $8 per hour?
A) 0 B) 1 C) 3 D) 4
Imagine that the state legislature raises the tax on gasoline by 10 cents/gallon. What most likely happens next?
a. Service station operators pass along the tax to you, adding the 10 cents to the price of a gallon of gas. b. Service station operators grumble, but pay the tax without passing the cost along to you. c. Service station operators pass along as much of the tax to you as they can, probably about 6 cents/gallon. d. None of these choices.
An increase in the MRP for each unit of labor
A. means that the marginal physical product of labor rose. B. means that more labor is demanded by the firm. C. means that the demand for the final product has fallen. D. means that labor's productivity has risen.
Briefly explain how unemployment insurance can stabilize the economy. Give an example.
What will be an ideal response?