At the economy's natural rate of unemployment
A. only frictional unemployment exists.
B. there is only a relatively small amount of cyclical unemployment.
C. only structural unemployment exists.
D. the economy is fully employed.
Answer: D
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A command system is a
A) method of organizing production that uses a market-like mechanism inside the firm. B) method of organizing production that uses a managerial hierarchy. C) set of rules that induce an agent to act in the best interest of a principal. D) method of production that implements an assembly-line process.
According to the income effect, when the price of automobiles rises, people buy fewer automobiles because
a. they substitute other forms of transportation for driving. b. the nominal amount of their paychecks is smaller. c. the purchasing power of their income is reduced. d. their demand for automobiles is very elastic.
In Econland population and average labor productivity are constant. If a larger proportion of the population enters retirement, then total output will ________ and output per person will ________.
A. decrease; remain constant B. decrease; decrease C. remain constant; remain constant D. increase; increase
We can estimate that if a country grows at 7 percent per year, it will double its real GDP per capita in:
A. 2 years. B. 20 years. C. 35 years. D. 10 years.