Why does the unemployment rate go down as more people become discouraged about the economy?
What will be an ideal response?
As people become discouraged, they stop looking for jobs and drop out of the labor force. This decreases both the numerator and denominator by the same number. However, it reduces the numerator by a bigger percentage than the denominator, and the unemployment rate falls. Example: {Look/(Look + Work)} = 4/(4 + 6) = 40%. When people stop looking this number becomes 3/(3 + 6) = 33.3%.
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Which of the following is true? a. As long as human wants exceed available resources, scarcity will exist
b. Scarcity ultimately leads to competition for the available goods and services. c. Scarcity affects everyone to the same degree. d. Both a. and b. are true.
In a market system, relative scarcities of resources are indicated by
A. surpluses. B. relative market prices. C. supply and demand being out of equilibrium. D. excess demand and excess supply.
Which of the following statements can correctly be made about social regulation?I.Extensive social regulation may have an anticompetitive effect.II.The benefits of social regulation are easier to measure than are the costs of social regulation.
A. I only B. II only C. both I and II D. neither I nor II
What is meant by the first-mover advantage? How does commitment matter in a game with a first-mover advantage? a. Some games have a first-mover advantage and others do not. Suppose you were playing rock-paper-scissors as an extensive form game
First you choose rock, or paper, or scissors and then your opponent makes a choice. Is there a first-mover advantage in this game? b. Two firms are thinking of entering a new market. If only one enters, it will make high profits. If two firms enter, then both will suffer losses. Suppose that the game is played sequentially, with Firm 1 deciding first. Does this game have a first-mover advantage?