In the economy of Confoundia, 500 people have jobs, 1000 people are not working but are searching for work, and 2000 people don't work and don't seek work. The unemployment rate is
A) 25 percent.
B) 33 percent.
C) 40 percent.
D) 50 percent.
E) 66 percent.
E
You might also like to view...
Economic analysis and policy are made more difficult by
A. having so much data to work with. B. inadequate and imperfect information. C. an incomplete consensus on the basic goals of social policy. D. the lack of public interest and opinion on economic questions. E. the major economic problems society faces.
The demand for electricity is more elastic in the long run than in the short run because
A. consumers can shift to more efficient electrical appliances in the long run.
B. solar energy will eventually replace electricity in the long run.
C. government regulation of electricity producers is most effective in the long run.
D. more electricity can be produced in the long run.
Which of the following is an example of the monitoring problem?
A. Government fails to stop firms hiring child labor to produce goods. B. The managers of a firm maximize their own salaries to the detriment of maximizing profit for the owner of the firm. C. A firm does not take into account the air pollution caused by a coal factory when pricing its product. D. Two firms collude to set the market price, but the government cannot prove this conclusively.
Assume that the government decides to use fiscal or monetary policy to stimulate the economy and that this action comes as a surprise to most individuals and businesses. In the short run, the result will be
A. an increase in aggregate demand and a fall in the price level. B. a decrease in aggregated demand and a rise in the price level. C. a decrease in the average duration of unemployment and a decrease in the unemployment rate. D. an increase in the average duration of unemployment and an increase in the unemployment rate.