If the measured unemployment rate is 6% and the natural unemployment rate is 4%, then
A. cyclical unemployment is 2%.
B. frictional unemployment is -2%.
C. structural unemployment is 10%.
D. frictional unemployment is 2%.
Answer: A
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Refer to the figure below. Suppose the solid line shows the demand for coffee. If coffee and tea are substitutes, and the price of tea falls, then you would expect: 
A. an increase in the quantity of coffee demanded, but no shift in the demand curve. B. the demand curve to shift to D(B) C. the demand curve to shift to D(A). D. a decrease in the quantity of coffee demanded, but no shift in the demand curve.
Asarta Inc. is polluting into the nearby aquifer and the citizens of Buttersville demand that this be cleaned up. If the benefit to cleaning up the aquifer is estimated to be about $133,000 and the cost is estimated at $130,000 will the aquifer get cleaned?
A. Yes, because the benefit is high. B. No, because the costs outweigh the benefits. C. Yes, because the benefits outweigh the costs. D. Uncertain, with the information given.
If an economist states that not enough of a good is being produced, she usually means that
A) not everyone can afford the good. B) price exceeds marginal cost. C) consumer surplus equals zero. D) at equilibrium, some people who still wish to sell the good cannot find a buyer.
Which of these sets of nations are low-income developing nations?
A. Brazil, Australia, and South Africa. B. Uganda, Madagascar, and Burkina Faso. C. Canada, Switzerland, and France. D. Germany, South Korea, and Mexico.