Questions from General Economics


Q: Are minimum-wage laws a better explanation for structural unemployment among

Are minimum-wage laws a better explanation for structural unemployment among teenagers or among college graduates? Why?

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Q: What claims do advocates of unions make to argue that unions are

What claims do advocates of unions make to argue that unions are good for the economy?

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Q: The Federal Reserve’s target rate for the federal funds rate a

The Federal Reserve’s target rate for the federal funds rate a. is an extra policy tool for the central bank, in addition to and independent of the money supply. b. commits the Fed to set a particular...

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Q: Explain four ways in which a firm might increase its profits by

Explain four ways in which a firm might increase its profits by raising the wages it pays.

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Q: Is unemployment typically short-term or long-term? Explain

Is unemployment typically short-term or long-term? Explain.

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Q: The population of Ectenia is 100 people: 40 work fulltime,

The population of Ectenia is 100 people: 40 work fulltime, 20 work half-time but would prefer to work fulltime, 10 are looking for a job, 10 would like to work but are so discouraged they have given u...

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Q: Using the numbers in the preceding question, what is the size

Using the numbers in the preceding question, what is the size of Ectenia’s labor force? a. 50 b. 60 c. 70 d. 80

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Q: The main policy goal of the unemployment insurance system is to reduce

The main policy goal of the unemployment insurance system is to reduce the a. search effort of the unemployed. b. income uncertainty that workers face. c. role of unions in wage setting. d. amount of...

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Q: According to the most recent data, among workers who are paid

According to the most recent data, among workers who are paid at an hourly rate, about _________ percent have jobs that pay at or below the minimum wage. a. 2 b. 5 c. 15 d. 40

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Q: Unionized workers are paid about _________ percent more than similar nonunion workers

Unionized workers are paid about _________ percent more than similar nonunion workers. a. 2 b. 5 c. 15 d. 40

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