Suppose that in Southlandia, frictional unemployment is 2%, structural unemployment is 3%, and cyclical unemployment is 4%. What is the natural rate of unemployment in Southlandia?
a) 2%
b) 3%
c) 5%
d) 9%
Answer: c) 5%
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Wages tend to be "sticky" because:
A. contracts are often negotiated for long terms and cannot be easily changed. B. workers are less likely to work as hard if their pay may be cut due to market performance and not their performance. C. constantly changing wages creates uncertainty and costs the employer a lot of time and energy to change wage rates. D. All of these are possible reasons why wages might be sticky.
An SCU can function effectively when:
a. the information flows to the SCU through the shortest route from the source. b. the aims and interests of its members and those of division-level employees coincide. c. the information flows to the SCU through a longer route, enabling multiple-level checks. d. the organization has different groups of individuals independently analyzing different types of risk.
The purpose of the Dodd-Frank Wall Street Reform Act was to:
A. limit what stocks and mutual funds that investors could choose. B. give banks the choice to report their holdings. C. encourage banks to engage in more risk-taking. D. force banks to limit their risk-taking.
The shape of a firm's ________ -run average cost curve depends on how costs vary with ________.
A. long; scale of operations B. short; scale of operations C. short; no fixed factor of production D. long; a fixed factor of production