The existence of discouraged workers will lead to an official unemployment rate that is
A) overstated. B) understated.
C) either overstated or understated. D) unbiased.
B
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Fernando charges the restaurant Flaming Fernando's $1,000 annually for use of his name. If Fernando increases the fee for use of his name
A) the restaurant's average fixed cost, average variable cost, average total cost, and marginal cost curves all shift upward. B) the restaurant's average fixed cost, average total cost, and marginal cost curves shift upward. C) the restaurant's average variable cost, average total cost, and marginal cost curves shift upward. D) the restaurant's average fixed cost and average total cost curves shift upward.
In the short run, wages are assumed to be: a. constant
b. sticky. c. inflexible. d. all of the above are true.
Which of the following is true?
a. Inflation and unemployment rates can both decrease in the short run in response to negative supply shocks. b. Inflation and unemployment rates cannot both increase or both decrease in the short run in response to changes in aggregate demand. c. Inflation and unemployment rates can both increase in the short run in response to positive supply shocks. d. All of the above are true.
When a country's production possibilities frontier shifts outward over time, the country is experiencing
A) no opportunity cost.
B) economic growth.
C) higher unemployment of resources.
D) a decrease in unemployment of resources.
E) an end to opportunity cost.