If a large number of workers are classified as being out of the labor force when they are really looking for work, this will lead to an official unemployment rate that is
A) overstated. B) understated.
C) neither overstated or understated. D) unbiased.
B
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Suppose you work for a government agency that is considering removing certain agricultural subsidies. The removal of these subsidies will increase the price, thus lowering consumers' welfare
Because only aggregate market data is available, you are unable to measure the exact values for the compensated and equivalent variation by consumer. However, you are able to estimate the change in market consumer surplus. Assuming agricultural products are normal goods, how does your estimate of consumer surplus compare to the unknown EV and CV? Explain. Under what conditions will the three measures of welfare be close to one another?
The tendency of bankers to take unwarranted risks in making loans because deposits were insured is an example of _____
a. anchoring bias b. self-serving bias c. moral hazard d. hazard pay e. banker's lobbying
The Bureau of Labor Statistics (BLS) includes discouraged workers in its measure of the labor force
Indicate whether the statement is true or false
The only way that the family can consume more and enjoy a higher standard of living is to:
A. decrease the amount each person produces. B. increase both how many people are in the family, and the amount each one produces. C. increase how many people are in the family. D. increase the amount each person produces.