High unemployment is socially wasteful. Why?
What will be an ideal response?
High unemployment is socially wasteful. When the economy does not create enough jobs to employ everyone who is willing to work, a valuable resource is lost. Potential goods and services that might have been produced and enjoyed by consumers are lost forever. This lost output is the central economic cost of high unemployment, and we can measure it by comparing actual and potential GDP.
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An input-output table
A) details the flows of goods and services between various sectors of the economy. B) shows purchases by certain industries from other industries. C) shows sales by certain industries to other industries. D) All of the above.
If you have a choice of consuming either two apples, three oranges, or one candy bar, the opportunity cost of the candy bar is:
a. two apples. b. three oranges. c. two apples and three oranges. d. two apples or three oranges, whichever you value more. e. the difference in the prices of the three options.
The terrorist attacks in Bali, London, and Madrid since 2001 suggest that U.S. policy has
A. made it significantly costlier to launch another terrorist attack against the U.S. on U.S. soil. B. forced a complete reversal of the overriding objectives of terrorist groups since 2001. C. made it impossible to launch another terrorist attack against the U.S. on U.S. soil. D. depleted the financial resources of foreign terrorist groups.
Which statement is correct?
a. The discount rate is the rate banks charge one another on overnight loans b. The Federal funds rate is the rate banks charge their most creditworthy customers c. The real interest rate is greater than the nominal interest rate during periods of inflation d. The prime interest rate rises and falls with the Federal funds rate