Juanita earned a B.S. in engineering and went to work for a large defense contractor in a small town in California. When the government cut spending, Juanita and 99 others were laid off. The only other business in the town is growing grapes to be made into raisins, but the growers refuse to hire laid-off engineers, knowing they will leave at the first opportunity. The unemployment Juanita is
experiencing is:
a. cyclical.
b. structural.
c. permanent.
d. frictional.
e. voluntary.
b
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Which of the following represent expansionary fiscal policy?
A) an increase in marginal individual income tax rates B) an increase in average individual income tax rates C) a cut in corporate income tax rates D) a reduction in government spending
With a linear production function in labor only, which of the following must be true?
A) The representative household works as much as possible. B) The representative firm makes large profits. C) The real wage equals total factor productivity. D) The marginal product of labor exceeds the real wage.
An increase in the demand for a product will shift the demand curve for labor producing the product to the left
a. True b. False Indicate whether the statement is true or false
A country runs a deficit in its current account if:
a. ?it follows the double-entry bookkeeping requirement that total debits must equal total credits. b. ?foreign currency received from exports and transfers exceeds the foreign exchange needed to pay for imports and to make unilateral transfers. c. ?it consumes less goods and services compared to what it produces. d. ?foreign currency received from exports and transfers is less than the foreign exchange needed to pay for imports and to make unilateral transfers. e. ?the interest and dividends earned by its residents on foreign assets exceed the interest and dividends earned by foreigners who invest in domestic assets.