One major reason that economists are concerned about unemployment is that
A) unemployment always leads to frictional unemployment.
B) unemployment reduces the size of the labor force.
C) unemployment shifts the production possibilities curve outward.
D) the economy is producing less output than if there were full employment.
D
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The purchase of a foreign asset by a U.S. resident is a
A) surplus item on the financial account. B) deficit item on the current account. C) deficit item on the financial account. D) surplus item on the current account.
An example of an equity asset is:
A. a stock. B. a dividend. C. an intermediary. D. a cash deposit.
Which of the following is a correct statement about production possibilities frontiers?
a. An economy can produce only on the production possibilities frontier. b. An economy can produce at any point inside or outside a production possibilities frontier. c. An economy can produce at any point on or inside the production possibilities frontier, but not outside the frontier. d. An economy can produce at any point inside the production possibilities frontier, but not on or outside the frontier.
If the economy grows, the government's budget position should automatically:
a) Worsen b) Improve c) Stay the same d) Decrease with inflation