Why is there NO persistent unemployment in the classical model?
A) Unionization creates job security for workers.
B) The wage level adjusts to eliminate unemployment.
C) The interest rate adjusts to eliminate unemployment.
D) The rate of economic growth is always high enough to allow those who want to work at current wages to find jobs.
B
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The above figure shows the production possibility frontier for a country. What is the opportunity cost per ton of rice to move from point D to E?
A) 3000 bottles of wine B) 333 bottles of wine C) 3 bottles of wine D) 1/3 of a bottle of wine E) None of the above answers is correct.
A few economies have the interesting characteristic that exports are more than 100 percent of the economy's GDP. How is this possible?
What will be an ideal response?
An entrepreneur is a(n)
a. individual who has much education b. organizer who seeks profitable opportunities and is willing to accept risks c. business organization that uses inputs to produce output d. administrator who runs an enterprise without accepting any risk of financial loss e. depot or storehouse for commercial products
The Federal Reserve Banking Act of 1978
a. attempted to guarantee stability of the banking system b. was a reaction to the savings and loan crisis c. added full employment to the list of objectives for the Fed d. strengthened deposit insurance programs e. pledged the Fed to keep the inflation rate low