The unemployment rate will rise when
A. the average work week falls from 40 hours to 39 hours.
B. the duration of unemployment increases.
C. the size of the labor force increases without an increase in employment.
D. people get discouraged and quit looking for a job.
Answer: C
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Consider a discount retailer such as Costco which uses a two-part tariff pricing strategy. The Costco membership fee
A) is used by Costco to cover its fixed costs of production. B) buys the consumer the right to make future purchases at Costco. C) is a resalable asset to the consumer. D) is a resalable asset to the producer.
Which of the following best describes how economists test the empirical predictions of economic models?
A) Economists survey individuals to learn about how people think through decisions about how much to purchase or to produce. B) Economists collect and analyze real-world observations of people's actions to discern if those actions accord with theories' predictions. C) Based on theories about thought processes, economists seek to determine which thought processes predominate in determining how a person decides what actions to take. D) Recognizing that people always do what they say they will do, economists rely exclusively on information gleaned from polls and surveys conducted by poll takers and market researchers.
Trade restrictions can prevent purchasing power parity from holding because:
A. they can add costs to the selling price because they add to the seller's cost. B. the time and energy of importation paperwork can add to the cost of the good sold. C. tariffs can add to the cost of the good sold. D. All of these statements are true.
A perfectly competitive firm produces 3,000 units of a good at a total cost of $36,000. The fixed cost of production is $20,000. The price of each good is $10. Should the firm continue to produce in the short run?
A) No, it should shut down because it is making a loss. B) Yes, it should continue to produce because its price exceeds its average fixed cost. C) Yes, it should continue to produce because the firm's revenues cover the total variable cost of $16,000. D) There is insufficient information to answer the question.