The presence of discouraged workers may cause:
A. GDP to be too large.
B. the employment rate to be understated.
C. the unemployment rate to be overstated.
D. the unemployment rate to be understated.
Answer: D
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In December 2010, Kansas had a severe ice storm that caused electrical blackouts. The Fictitious Portable Generator firm of Lawrence had several portable generators that could be used by homeowners to provide electricity
Which of the following would be the fair-rules way to provide them? A) The government confiscates the generators owned by Fictitious and distributes them. B) Fictitious is forced by the state to rent the generators at half the normal rate. C) The state sets up a lottery to determine who rents the available generators at the normal rate. D) Fictitious rents generators at the equilibrium market price. E) Fictitious follows government commands about who gets to use the generators.
Margin requirements on stocks are set by
A) the New York Stock Exchange. B) the National Association of Securities Dealers. C) the Federal Reserve System. D) the Securities Exchange Commission.
Assume that cotton is a normal good. Which of the following would cause both the equilibrium price and equilibrium quantity of cotton to increase?
A) an increase in consumer income B) a drought that sharply reduces cotton output C) a decrease in consumer income D) unusually good weather that results in a bumper crop of cotton
Refer to the diagrams. The profit-maximizing firm's total wage cost:
A. is 0abc.
B. is 0Wbc.
C. is Wab.
D. cannot be determined.