What is the difference between the Current Population Survey and the establishment survey? What are the major drawbacks for each of these measures of unemployment?
What will be an ideal response?
The Current Population Survey, also called the household survey, calculates the unemployment rate by considering those people who worked during the week before the survey or were temporarily away from their jobs as employed, and those people who did not work during the week before the survey but were available for work and actively looking as unemployed. Drawbacks to the Current Population survey include distinguishing between unemployed workers and those not in the labor force, such as discouraged workers, and counting part-time workers as employed even if those workers would prefer full-time jobs. The establishment survey, also called the payroll survey, samples business establishments to gather information on the number of people employed and on a company payroll. Drawbacks to the establishment survey include not gathering data on self-employed persons, failing to count some persons who are employed at newly opened businesses, and not providing any information on unemployment.
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Tracy and Amy are playing a game in which Tracy has the first move at X in the decision tree shown below. Once Tracy has chosen either the top or bottom branch at X, Amy, who can see what Tracy has chosen, must choose the top or bottom branch at Y or Z. Both players know the payoffs at the end of each branch. 
In the equilibrium of this game:
A. Tracy and Amy both get 125. B. Tracy gets 25 and Amy gets 225. C. Tracy gets 300 and Amy gets 200. D. Tracy gets 75 and Amy gets 150.
A central bank can sterilize the increase in the money supply that results from an intervention to defend a fixed exchange rate by selling domestic government bonds.
Answer the following statement true (T) or false (F)
You own an oil painting that increases in value by $12,000 but you do not sell the painting. The $12,000 is counted as ________ income.
A. taxable income but not economic B. both economic and taxable C. neither taxable nor economic D. part of economic income but not part of taxable
An economic model can be defined as
A. a testable claim that can be evaluated with proper data. B. a representation of a theory or a part of a theory. C. another word for theory. D. a method to distinguish correlation from causation. E. All of these responses are correct.