1. Due to the rising cost of a college education, a greater
percentage of students have part-time jobs in comparison to past
years. All else the same, this decrease in the number of full-time
students can be expected to ________ the labor force participation
rate and ________ the unemployment rate.
|
increase; have no effect on |
|
have no effect on; have no effect on |
2.
Technological advances
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always involve buying lots of expensive equipment. |
|
rarely result in an increase in productivity. |
|
introduce new techniques or methods so that firms can produce
more with less. |
|
are always the result of private-sector innovation. |
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are equally common across all firms.
|
3.
Why do incentives matter to economists?
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Governments are the source of all incentives and there is value
in studying the actions of government. |
|
Incentives explain how people make decisions, and are the key
to understanding economics. |
|
People make poor decisions when they’re given money they didn’t
earn. |
|
Incentives are often the guiding principle behind greed and
exploitation. |
|
Without incentives, the distinction between microeconomics and
macroeconomics would be unclear. |
4.
During a recession, a number of workers have their hours reduced
by their employers. All else the same, the unemployment rate will
________ and the labor force participation rate will ________.