Unemployment
How do economists measure unemployment? Why is unemployment not a perfect measure of joblessness? Visit the Bureau of Labor Statistics website and explore the national unemployment rate section. What is the current level of national unemployment? Has it increased or decreased? Explain why the unemployment rate has changed. (You can also talk about COVID-19)
In: Economics
In: Economics
1)
Which of the following combinations of changes in supply and demand (listed in the same order) is likely to cause an indeterminate change in quantity?
Multiple Choice
Decrease/Decrease
Increase/Decrease
Increase/Increase
Static/Decrease
2)
A government set minimum wage:
Multiple Choice
imposes a legal ceiling above the wage of the least skilled worker.
is one of the reasons why price level falls during recessions.
imposes a legal floor under the wage of the most skilled worker.
imposes a legal floor under the wage of the least skilled worker.
3)
International specialization and trade:
Multiple Choice
allow a nation to get more of a desired good at less sacrifice of some other good.
can allow an economy to circumvent the output limits imposed by its domestic production possibilities curve.
Has the same effect as having more and better resources.
All of the above.
4)
Ed, Mike, and Scott are the only three people in a community and Ed is willing to pay $20 for the 5th unit of a public good; Mike, $15; Scott, $25. The government should produce the 5th unit of the public good if the marginal cost is:
Multiple Choice
less than $150.
less than $100.
less than $60.
less than $300.
5)
Answer the question based on the following information.
Way-Below Normal University has found it necessary to institute a
crime-control program on its campus to deal with the high costs of
theft and vandalism. The university is now considering several
alternative levels of crime control. This table shows the expected
annual costs and benefits of these alternatives. If Way-Below
Normal undertakes Level Three:
| Total costs per year | Total benefits per year (reduction in the costs of crime) | |
| Level One – 1 security officer | $20,000 | $80,000 |
| Level Two – 1 security officer with guard dog | 30,000 | 120,000 |
| Level Three – 1 security officer with guard dog and patrol car | 40,000 | 140,000 |
| Level Four – 2 security officers with guard dog | 50,000 | 155,000 |
| Level Five – 2 security officers with guard dog and patrol car | 60,000 | 160,000 |
Multiple Choice
total benefits will be less than total costs.
marginal costs will exceed marginal benefits.
there would be an under-allocation of resources to crime control.
there would be an over-allocation of resources to crime control.
6)
If a good that generates negative externalities was priced to take into account these negative externalities, then its:
Multiple Choice
price would decrease and its output would increase.
output would increase but its price would remain constant.
price would increase and its output would decrease.
price would increase but its output would remain constant.
In: Economics
1. Fiscal Policy
What is fiscal policy? Is the President and Congress currently running expansionary fiscal policy or contractionary fiscal policy? Why? Visit the Congressional Budget Office and report a project that could impact the budget (search topics then pick an area that you find interesting and may even talk about the COVID-19 as well).
In: Economics
Which of the following would shift the demand curve for cars to the right?
Group of answer choices
An increase in the federal funds rate
An increase in discount lending by the Fed to banks
An increase in home mortgage interest rates
An increase in the unemployment rate over the NAIRU
originally proposed the use of government spending to stimulate the economy in the 1930s, during the Great Depression.
Group of answer choices
John Maynard Keynes
Franklin Delano Roosevelt
Albert Einstein
Charles H. Chaplin
In: Economics
Give an explanation.
In: Economics
1. What is "household production" and how is its value measured?
2. Describe in detail the long-run trends in the value of U.S. household production?
3. If the value of household production were included in GDP, how would this change the growth patterns of U.S. GDP over time?
In: Economics
In: Economics
In: Economics
In: Economics
In: Economics
In: Economics
ASSUME FEDERAL RESEVE BANK THROUGH AN EXPASSIONARY
MONETARY POLICY (OPEN MARKET OPERATION) HAS
INCREASED MONEY SUPPL BY 60 BILLION,
EXPLAIN THE IMPACT OF THIS POLICY ON REAL GDP IF:
A.EACH $ 5 BILLION INCREASE IN MONEY SUPPLY
REDUCES THE RATE OF INTEREST BY 0.3 PERCENTAGE POINT
B.EACH 1 PERCENTAGE DECLINE IN INTEREST RATES STIMULATE 24 BILLION WORTH OF NEW INVESTMMENT.
C.MPC = 0.75 .
D.THE AGGREGATE SUPPLY CURVE IS SO FLAT PRICES DO NOT
RISE NOTICABLY (NO INFLATION) WHEN DEMAND INCREASES. MAKE SURE DO
ALL CALCULATION AS WELL PROPPER GRAPHS
In: Economics
3A) A junk bond promises to pay 16% interest, but it is expected to default (be worthless and thus, have a negative 100% rate of return) with a probability equal to 0.1. The expected rate of return is (in percent):
answer: ___________
3B) An investment costs $2.5 million today and is expected to be worth $3 million in one year. What is the maximum interest rate that the investor would be willing to pay for a loan to finance this investment? That is, what is its internal rate of return? (in percent)
answer:____________
3C) An investment pays $210,000 next year. The interest rate is 5%. The present value of this investment is (in dollars)
answer:_____________
3D) When the wage of a worker rises
a. works more due to the substitution effect. There is no income effect.
b. works more due to the income effect. There is no substitutiion effect.
c. works more due to the substitution effect but less due to the income effect.
d. works more due to the income effect but less due to the subsitution effect.
e. works more due to the substitution and the income effect.
3E) When non-wage income rises, the worker
a. works more due to the substitution effect. There is no income effect.
b. works more due to the income effect. There is no substitution effect.
c. works less due to the substitution effect. There is no income effect.
d. works less due to the income effect. There is no substitution effect.
e. works more due to both the substitution and income effects
In: Economics
Assume the wage in a cluster location is equal to w=$120. Labor demand curves are given by wBOOM=180-L and wBUST=100-2L, where L denotes the number of jobs.
1) Calculate the number of employed workers in both situations (Boom, Bust)
A) 120;0 B) 60;-10 C) 180;20 D) None of these
2) What is the expected CS if the likelihood of boom is 90%?
A)0 B)1800 C) 100 D) None of the above
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