activity 13

Using the numbers in the previous question, what is the size of Econland's labor force? Group of answer choices 40 50 60 70 80

70

Cyclical unemployment Group of answer choices Has a different explanation than does the natural rate of unemployment.Refers to the year-to-year fluctuation in unemployment around an economy's natural rate of unemployment.Is closely associated with short-run ups and downs of economic activity.All of the above are correct.

All of the above are correct.

The designation "natural" implies that the natural rate of unemployment Group of answer choices Is desirable.Is constant over time.Is impervious to economic policy.Does not go away on its own even in the long run.

Does not go away on its own even in the long run.

In order to promote growth in living standards, policymakers must Group of answer choicesEncourage investment in the health and education of the population.Raise taxes to increase government revenue.Discourage investment from abroad.Promote bureaucracy.All of the above.

Encourage investment in the health and education of the population.

What is the primary determinant of a nation's standard of living? GDP Inflation Productivity Natural resources Population

GDP

All else equal, if there are diminishing returns, then which of the following is true if a country increases its capital by one unit? Group of answer choicesOutput will rise by more than it did when the previous unit was added.Output will fall by more than it did when the previous unit was added.Output will remain constant.Output will rise but by less than it did when the previous unit was added.Output will fall but by less than it did when the previous unit was added.

Output will rise but by less than it did when the previous unit was added.

Suppose that a new government is elected in Econland. The new government takes steps toward improving the court system and reducing government corruption. The citizens of Econland find these efforts credible and outsiders believe these changes will be effective and long lasting. These changes will probably raise Productivity but not real GDP per person in Econland. Real GDP per person but not productivity in Econland. Neither productivity nor real GDP per person in Econland .Real GDP per person and productivity in Econland. Not enough information provided to determine the effect on real GDP per person or productivity in Econland.

Real GDP per person and productivity in Econland.

Which of the following countries benefited significantly from the catch-up effect in the last half of the twentieth century? Group of answer choicesThe United StatesSouth KoreaBritainRussiaArgentina

South Korea

Unemployment includes Group of answer choicesThose who are available for work and have tried to find employment during the previous four weeks.Those who are waiting to be recalled to a job (laid off).Those who are not in the labor force.Both (a) and (b).All of the above.

both a and b

Because capital is subject to diminishing returns, higher savings and investment do not lead to higher Group of answer choicesIncome in the long runIncome in the short runGrowth in the long runGrowth in the short runPurchasing power over time

growth in the long run

Which of the following is the best measure of economic prosperity? The price level The level of nominal GDP The growth rate of nominal GDP The growth rate of real GDP The level of real GDP

the level of real GDP