The growth rate of potential GDP is the sum of the growth rates of
a. labor force and population.
b. labor force and labor productivity.
c. labor force and capital stock.
d. labor productivity and capital stock.
b
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Most economists will argue that the minimum wage causes unemployment. Even politicians will recognize this when pressed
However, typically liberals will tout the benefits of the minimum wage while conservatives will decry the disruption that it causes in the labor market. Which economic objective seems to be more important for liberals and which is more important to conservatives if this general observation is correct? Which side is right?
Which of the following criteria need NOT be satisfied for choosing a policy instrument?
A) The variable must be measurable. B) The variable must be controllable. C) The variable must be predictable. D) The variable must be transportable.
The category of unemployment that is a byproduct of geographic and occupational mobility and generally considered to be a limited problem is: a. frictional unemployment. b. underemployment
c. cyclical unemployment. d. structural unemployment.
We would expect the interest rate on Bond A to be higher than the interest rate on Bond B if the two bonds have identical characteristics except that
a. the credit risk associated with Bond A is lower than the credit risk associated with Bond B. b. Bond A was issued by the city of Philadelphia and Bond B was issued by Red Hat Corporation. c. Bond A has a term of 20 years and Bond B has a term of 2 years. d. All of the above are correct.