When economists speak of full employment, they refer to the case in which the sum of frictional and structural unemployment is
A) falling over time.
B) equal to zero.
C) equal to the actual amount of unemployment.
D) greater than the level of deficient demand unemployment.
C
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If an economy is growing at a rate of 2.5% per year, how long will it take the economy to double in size?
A) 60 years B) 43 years C) 36 years D) 28 years
When the fishing economy mobilized for war preparedness by drafting young men and women, many draftees came from fishing jobs. Picture the market for fish, before and after the mobilization. What happens to the price and quantity of fish on the market after the draft went into effect?
a. Both fish prices and quantity increased. b. Fish prices increased and quantity remained unchanged. c. The draft had no effect on the fish market. d. Fish prices decreased and quantity increased. e. Fish prices increased and the quantity decreased.
A negative cross elasticity indicates that two goods are complements
a. True b. False Indicate whether the statement is true or false
There are two employers in Bucolic that hire people who do not have a high school degree: a grocery store and a hardware store. The grocery store pays $10 per hour and the hardware store pays $12 per hour. People who work at either store can work as many hours as they want at those wages. Assume that it takes two hours to interview for a job. Lee works at the grocery store, but would like to work at the hardware store. If Lee interviews at the hardware store, there is a 10% probability of being hired. Assume that Lee is risk-neutral. In terms of foregone earnings, what does it cost Lee to spending two hours interviewing for a job at the hardware store?
A. $2 B. $10 C. $20 D. 0