Question

The natural rate of unemployment is not a measure of

1. the rate at which marginal returns to labor are diminishing according to the economy’s long run production function
2. human capital
3. long run equilibrium in the labor market
4. the rate at which natural resources are extracted and depleted

A multiple-choice question with several possible answers.(Required)

Which of the following would give workers some degree of monopoly power?

1. high rates of short term unemployment
2. labor unions
3. learning by doing
4. highly specialized human capital

A multiple-choice question with one possible answer.(Required)

Unemployment insurance benefits increase productivity most by

1. providing replacement rates that are lower than real wages
2. shifting government funds away from less productive ventures
3. helping to improve the match-up between jobs and workers
4. shortening the duration of unemployment

A multiple-choice question with one possible answer.(Required)

On average, over the last 50 years or so world trade has

1. declined as nations closed their borders to imports
2. been dominated by Middle East oil exports
3. increased faster than world output
4. been primarily concentrated in agriculture

A multiple-choice question with one possible answer.(Required)

The idea that efficient producers can benefit from trading with inefficient producers is known as

1. New Trade Theory
2. the Hecksher-Ohlin theorem
3. the theory of competitive advantage
4. comparative advantage

A multiple-choice question with one possible answer.(Required)

An increase in a country’s terms of trade means that

1. export-import contracts are of longer duration
2. the benefits from trade are increasing
3. the exchange rate is rising
4. imports have become relatively more expensive

A multiple-choice question with one possible answer.(Required)

Differences between trade partners in real hourly wage rates for unskilled labor illustrate

1. the disequilibria created by international trade
2. the principle of comparative advantage
3. discrepancies between nations in accounting procedures
4. the importance of different capital endowments

A multiple-choice question with one possible answer.(Required)

Recently developed New Trade Theory implies that

1. trade wars benefit society by raising the level of competitiveness
2. protectionism is justified in order to allow “infant industries” to mature
3. international trade is not a zero-sum game, but a win-win proposition
4. a nation can create new comparative advantages by subsidizing key industries

A multiple-choice question with several possible answers.(Required)

Which of the following is the most likely to influence the natural rate of unemployment?

1. reduction in payroll taxes
2. monopolies in the goods market
3. monetary policy
4. labor unions

A multiple-choice question with one possible answer.(Required)

The marginal propensity to consume is

1. the slope of the consumption function
2. the inverse of the marginal propensity to save
3. the inverse of the expenditure multiplier
4. identical to the average propensity to consume

A multiple-choice question with one possible answer.(Required)

Suppose C = 9000 + .9Y, G = 400, I = 100, (X – IM) = 0, and there are no income taxes.

The equilibrium level of national income is

1. 1,500
2. 14,000
3. 13,500
4. 5,000

Answer 1

Answer 1:

Option D. The natural rate of unemployment in the economy is not a measure of the rate at which natural resources are extracted and depleted. It is related to the labor market and not to the natural resource market.

Answer 2:

Option B. Labor unions give some degree of monopoly power to the workers because they can organize themselves and put forward their demands to the employer when they are in labor unions.

Answer 3:

Option C.Unemployment insurance benefits increase productivity most by helping to improve match-up between jobs and workers.

Answer 4:

Option C. World trade has increased faster than worls output in the last fifty years and so.