Homework 3 ECON 101: Principles of Economics Due Date: June 5 2012

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Homework 3

ECON 101: Principles of Economics

Due Date: June 5
th

2012


1
.
Macroeconomists study

a.

the decisions of individual households and firms.

b.

the interaction between households and firms.

c.

economy
-
wide phenomena.



d.

regulations

imposed on firms and unions.


2.
Which of the following newspaper headlines is more closely related to what
microeconomists study than to what macroeconomists study?

a.

Unemployment rate rises from 5 percent to 5.5 percent.

b.

Real GDP grows by 3.1
percent in the third quarter.

c.

Retail sales at stores show large gains.

d.

The price of oranges rises after an early frost.


3. Gross domestic product measures

a.

income and expenditures.


b.

income but not expenditures.

c.

expenditures

but not income.

d.

neither income nor expenditures.


4.
For an economy as a whole, income must equal expenditure because

a.

the number of firms is equal to the number of households in an economy.

b.

individuals

can only spend what they earn each period.

c.

every dollar of spending by some buyer is a dollar of income for some seller.

d.

every dollar of saving by some consumer is a dollar of spending by some other
consumer.


5.
In the actual economy, goods and
services are purchased by

a.

households, but not firms or the government.

b.

households and firms, but not the government.

c.

households and the government, but not firms.

d.

households, firms, and the government.


6.
GDP is defined as the

a.

value

of all goods and services produced within a country in a given period of time.

b.

value of all goods and services produced by the citizens of a country, regardless of
where they are living, in a given period of time.

c.

value

of all final goods and services produced within a country in a given
period of time.

d.

value of all final goods and services produced by the citizens of a country,
regardless of where they are living, in a given period of time.


7.
In order to include
many different goods and services in an aggregate measure, GDP is
computed using, primarily,

a.

values of goods and services based on surveys of consumers.

b.

market prices.

c.

quantities purchased by a typical urban household.

d.

profits

from producing goods and services.


8.
If the price of a Blu
-
Ray Disc player is three times t
he price of an MP3 player, then
a Blue
-
Ray Disc player contributes

a.

more than three times as much to GDP as does a MP3 player.

b.

less

than three times as much to GDP as does a MP3 player.

c.

exactly three times as much to GDP as does a MP3 player.

d.

None of the above is necessarily correct.


9.
Over the last few decades, Americans have chosen to cook less at home and eat more at
restaurants. This change in behavior, by itself, has

a.

reduced measured GDP.

b.

not affected measured GDP.

c.

increased measured GDP by the value of the restaurant meals.

d.

increased measured GDP by the value added by the restaurant’s preparation
an
d serving of the meals.


10.
A professional gambler moves from a state where gambling is illegal to a state where
gambling is legal. Most of his income was, and continues to be, from gambling. His
move

a.

raises GDP.

b.

decreases GDP.

c.

doesn't

change GDP because gambling is never included in GDP.

d.

doesn't change GDP because in either case his income is included.


11.
Gasoline is considered a final good if it is sold by a

a.

gasoline

station to a bus company that operates a bus route between San Francisco
and Los Angeles.

b.

pipeline operator to a gasoline station in San Francisco.

c.

gasoline station to a motorist in Los Angeles.

d.

All of the above are correct.


12.
G
rapes are considered intermediate goods

a.

whether the purchaser uses them to make wine to sell or eats them.

b.

if the purchaser uses them to make wine to sell others but not if the
purchaser eats them.

c.

if

the purchaser eats them, but not if the purchaser uses to them to make wine to
sell.

d.

None of the above is correct.


13.
Martin, a U.S. citizen, travels to Mexico and buys a newly manufactured motorcycle
made there. His purchase is included in

a.

both Mexican GDP and U.S. GDP.

b.

Mexican GDP, but it is not included in U.S. GDP.

c.

U.S. GDP, but it is not included in Mexican GDP.

d.

neither Mexican GDP nor U.S. GDP.


14.
Which of the following items is included in U.S. GDP?

a.

final goods and se
rvices that are purchased by the U.S. federal government

b.

intermediate goods that are produced in the U.S. but that are unsold at the end of
the GDP accounting period

c.

goods and services produced by foreign citizens working in the U.S.

d.

All of the

above are included in U.S. GDP.


15.
The consumption component of GDP includes spending on

a.

durable goods and nondurable goods, but not spending on services.

b.

durable goods and services, but not spending on nondurable goods.

c.

nondurable goods and

services, but not spending on durable goods.

d.

durable goods, nondurable goods, and services.


16.
Which of the following is an example of a durable good?

a.

a refrigerator

b.

a quart of motor oil

c.

a business suit

d.

a can of soup


17.
Which of the following is included in the investment component of GDP?

a.

spending on new residential construction and spending on stocks and bonds

b.

spending on new residential construction but not spending on stocks and
bonds

c.

spending on stocks an
d bonds but not spending on new residential construction

d.

neither spending on stocks and bonds nor spending on new residential
construction


18.
A U.S. citizen buys a tea kettle manufactured in China by a company that is owned and
operated by U.S citiz
ens. In which of the following components of U.S. GDP is this
transaction accounted for?

a.

consumption and imports

b.

consumption but not imports

c.

imports but not consumption

d.

neither consumption nor imports


19.
The city of Ann Arbor Michigan
buys a police car manufactured in Germany. In the GDP
accounts this transaction is included in

a.

in government expenditures and exports.

b.

government expenditures and imports.

c.

exports, but not government expenditures.

d.

imports, but not
government expenditures.



20.
The U.S. Air Force pays a Turkish citizen $30,000 to work on a U.S. base in Turkey. As a
result,

a.

U.S. government purchases increase by $30,000; U.S. net exports decrease by
$30,000; and U.S. GDP is unaffected.

b.

U.S. g
overnment purchases increase by $30,000; U.S. net exports are unaffected;
and U.S. GDP increases by $30,000.

c.

U.S. government purchases, net exports, and GDP are unaffected.

d.

U.S. government purchases are unaffected; U.S. net exports decrease by
$30,000;
and U.S. GDP decreases by $30,000.


21
.
In the economy of Ukzten in 2010, consumption was $1000, exports were $100,
government purchases were $450, imports were $150, and investment was $350.
What was Ukzten’s GDP in 2010?

a.

$1750

b.

$1850

c.

$1900

d.

$2050



22.
Table 10
-
2

The table below contains data for the country of Crete for the year 2010.

Total income

$5731

Household purchases of durable goods

$1108

Household purchases of nondurable goods

$702

Household purchases of non
-
education
services

$203

Household purchases of education services

$302

Household purchases of new housing

$816

Purchases of capital equipment

$333

Inventory changes

$75

Purchases of new structures

$267

Depreciation

$401

Local government spending on goods and
services

$236

State government spending on goods and services

$419

Federal government spending on goods and services

$1182

Transfer payments

$707

Foreign purchases of domestically produced goods

$217

Domestic purchases of foreign goods

$129



Refer to Table 10
-
2.
What was Crete’s GDP in 2010?

a.

$4623

b.

$5731

c.

$6037

d.

$6839


23
.

Refer to Table 10
-
2.
What was Crete’s consumption in 2010?

a.

$1810

b.

$2013

c.

$2315

d.

$3131


24
.

Refer to Table 10
-
2.
What was Crete’s investment in
2010?

a.

$675

b.

$1090

c.

$1491

d.

$1793


25
.

Refer to Table 10
-
2.
What were Crete’s government purchases in 2010?

a.

$1130

b.

$1601

c.

$1837

d.

$2544


26
.

Refer to Table 10
-
2.
What were Crete’s net exports in 2010?

a.

-
$217

b.

-
$88

c.

$88

d.

$217


27.

If total spending rises from one year to the next, then

a.

the economy must be producing a larger output of goods and services.

b.

goods and services must be selling at higher prices.

c.

either

the economy must be producing a larger output of goods and services,
or goods and services must be selling at higher prices, or both.

d.

employment or productivity must be rising.



28.
If the prices of all goods and services produced in the economy ros
e while the quantity
of all goods and services stayed the same, which would rise?

a.

both real GDP and nominal GDP

b.

real GDP but not nominal GDP

c.

nominal GDP but not real GDP

d.

neither nominal GDP nor real GDP


29.
Which of the following
statements about nominal GDP and real GDP is correct?

a.

Nominal GDP is a better gauge of economic well
-
being than real GDP.

b.

Real GDP is a better gauge of economic well
-
being than nominal GDP.

c.

Real GDP and nominal GDP are equally good measures of economic well
-
being.

d.

Neither nominal nor real GDP provide a measure of economic well
-
being.

30
.

The inflation rate is the

a.

absolute change in real GDP from one period to another.

b.

percentage

change in real GDP from one period to another.

c.

absolute change in the price level from one period to another.

d.

percentage change in the price level from one period to another.


31.
A country’s real GDP rose from 500 to 550 while its nominal GDP ro
se from 600 to 770.
What was this country’s inflation rate?

a.

16.7%

b.

20%

c.

-
14.3%

d.

-
20%


32.
If in some year real GDP was $5 trillion and the GDP deflator was 200, what was
nominal GDP?

a.

$2.5 trillion

b.

$10 trillion

c.

$40 trillion

d.

$100 trillion


Table 10
-
4

The country of Caspir produces only cereal and milk. Quantities and prices of these
goods for the last several years are shown below. The base year is 2008.

Prices and Quantities

Year

Price of Cereal

Quantity of
Cereal

Price
of Milk

Quantity of

Milk

2008

$4.00

90

$1.50

150

2009

$4.00

100

$2.00

180

2010

$5.00

120

$2.50

200

2011

$6.00

150

$3.50

200


33
.

Refer to Table 10
-
4.
In 2008, this country’s

a.

nominal

GDP was greater than real GDP, and the GDP deflator was greater than
100.

b.

nominal GDP was equal to real GDP, and the GDP deflator was equal to 1.

c.

nominal GDP was less than real GDP, and the GDP deflator was less than 100.

d.

nominal

GDP was equal to real GDP, and the GDP deflator was equal to 100.


34
.

Refer to Table 10
-
4.
In 2009, this country’s

a.


real GDP was $660, and the GDP deflator was 113.4

b.


real GDP was $670, and the GDP deflator was 115.2

c.


real GDP was $660, and
the GDP deflator was 115.2.

d.


real GDP was $670, and the GDP deflator was 113.4.


35
.

Refer to Table 10
-
4.
In 2010, this country’s

a.

real GDP was $780, and the GDP deflator was 141.0.

b.

real GDP was $825, and the GDP deflator was 133.3.

c.

real

GDP was $780, and the GDP deflator was 133.3

d.

real GDP was $825, and the GDP deflator was 141.0


36
.

Refer to Table 10
-
4.
In 2011, this country’s

a.

real GDP was $900, and the GDP deflator was 150.2.

b.

real

GDP was $900, and the GDP deflator was 177.8.

c.

real GDP was $1065, and the GDP deflator was 177.8.

d.

real GDP was $1065, and the GDP deflator was 150.2.


37
.

Refer to Table 10
-
4.
This country’s output grew

a.

29.9% from 2008 to 2009.

b.

33.3% from

2009 to 2010.

c.

24.3% from 2009 to 2010.

d.

15.4% from 2010 to 2011.


38
.

Refer to Table 10
-
4.
This country’s inflation rate from 2009 to 2010 was

a.

16.4%.

b.

24.3%.

c.

41.0%.

d.

44.7%.


39
.

Refer to Table 10
-
4.
This country’s inflation rate
from 2010 to 2011 was

a.

15.4%.

b.

26.1%.

c.

45.5%.

d.

77.8%.


Table 10
-
7

The table below contains data for the country of Togogo. The base year is 1974.

Year

Nominal

GDP

GDP
Deflator

1974

$2000

100

1975

$3000

120

1976

$3750

150

1977

$6000

200


40
.

Refer to Table 10
-
7.

Which of the following is
not
correct?

a.

This economy experienced growth from 1974 to 1975.

b.

This economy experienced growth from 1975 to 1976.

c.

This economy experienced growth from 1976 to 1977.

d.

This economy
experienced inflation from 1974 to 1975, from 1975 to 1976, and
from 1976 to 1977.



41
.

Refer to Table 10
-
7.

From 1975 to 1976,

a.

inflation was 25% and output did not grow.

b.

inflation was 25% and output grew.

c.

inflation

was 50% and output did not grow.

d.

inflation was 50% and output grew.


42
.

Refer to Table 10
-
7.

From 1976 to 1977,

a.

inflation was 33.3% and output grew at a rate of 20%.

b.

inflation was 33.3% and output grew at a rate of 60%.

c.

inflation

was 50% and output grew at a rate of 20%.

d.

inflation was 50% and output grew at a rate of 60%.


43.
GDP is used as the basic measure of a society's economic well
-
being. A better measure
of the economic well
-
being of individuals in society is

a.

savin
g per person.

b.

GDP per person.

c.

government expenditures per person.

d.

investment per business firm.


44.
GDP is not a perfect measure of well
-
being; for example,

a.

GDP incorporates a large number of non
-
market goods and services that are of
little value to society.

b.

GDP places too much emphasis on the value of leisure.

c.

GDP fails to account for the quality of the environment.

d.

All of the above are correct.


45.
Suppose the government passes a law eliminating holidays and, as a
result, the
production of goods and services increases because people work more days per year
(and thus enjoy less leisure per year). Based on this scenario, which of the following
statements is correct?

a.

GDP would definitely increase, despite the fact
that GDP includes leisure.

b.

GDP would definitely increase because GDP excludes leisure.

c.

GDP could either increase or decrease because GDP includes leisure.

d.

GDP could either increase or decrease because GDP excludes leisure.

46
.

Suppose the
government eliminates all environmental regulations and, as a result, the
production of goods and services increases, but there is considerably more pollution.
Based on this scenario, which of the following statements is correct?

a.

GDP would definitely i
ncrease, despite the fact that GDP includes environmental
quality.

b.

GDP would definitely decrease because GDP includes environmental quality.

c.

GDP would definitely increase because GDP excludes environmental quality.

d.

GDP could either increase or
decrease because GDP excludes environmental
quality.


47.
Babe Ruth, the famous baseball player, earned $80,000 in 1931. Today, the best
baseball players can earn more than 400 times as much as Babe Ruth earned in 1931.
However, prices have also risen s
ince 1931. We can conclude that

a.

the best baseball players today are about 400 times better off than Babe Ruth was
in 1931.

b.

because prices have also risen, the standard of living of baseball stars hasn't
changed since 1931.

c.

one

cannot make judgments about changes in the standard of living based on
changes in prices and changes in incomes.

d.

one cannot determine whether baseball stars today enjoy a higher standard
of living than Babe Ruth did in 1931 without additional informat
ion
regarding increases in prices since 1931.


48.
In the CPI, goods and services are weighted according to

a.

how long a market has existed for each good or service.

b.

the extent to which each good or service is regarded by the government as a
necessit
y.

c.

how much consumers buy of each good or service.

d.

the number of firms that produce and sell each good or service.


49.
Between October 2001 and October 2002, the CPI in Canada rose from 116.5 to 119.8
and the CPI in Mexico rose from 93.2 to
102.3. What were the inflation rates for
Canada and Mexico over this one
-
year period?

a.

2.8 percent for Canada and 9.1 percent for Mexico

b.

2.8 percent for Canada and 9.8 percent for Mexico

c.

3.3 percent for Canada and 9.1 percent for Mexico

d.

3.3
percent for Canada and 9.8 percent for Mexico

Table 11
-
1

The table below pertains to Pieway, an economy in which the typical consumer’s
basket consists of 10 bushels of peaches and 15 bushels of pecans.

Year

Price of

Peaches

Price of

Pecans

2005

$11 per

bushel

$6 per bushel

2006

$9 per bushel

$10 per bushel


50
.

Refer to Table 11
-
1
. The cost of the basket in 2005 was

a.

$200.

b.

$210.

c.

$240.

d.

$245.


51
.

Refer to Table 11
-
1
. The cost of the basket in 2006 was

a.

$200.

b.

$210.

c.

$240.

d.

$245.


52
.

Refer to Table 11
-
1
. If 2005 is the base year, then the CPI for 2005 was

a.

83.3.

b.

100.

c.

120.

d.

200.


53
.

Refer to Table 11
-
1
. If 2005 is the base year, then the CPI for 2006 was

a.

83.3.

b.

100.

c.

120.

d.

240.


54
.

Refer to
Table 11
-
1
. If 2006 is the base year, then the CPI for 2005 was

a.

83.3.

b.

100.

c.

120.

d.

200.


55
.

Refer to Table 11
-
1
. If 2006 is the base year, then the CPI for 2006 was

a.

83.3.

b.

100.

c.

120.

d.

240.


56
.

Refer to Table 11
-
1
. If 2005 is
the base year, then the inflation rate in 2006 was

a.

16.7 percent.

b.

20 percent.

c.

40 percent.

d.

44.1 percent.


57
.

Refer to Table 11
-
1
. If 2006 is the base year, then the inflation rate in 2006 was

a.

16.7 percent.

b.

20 percent.

c.

40 percent.

d.

44.1 percent.



58.
Assume that consumers consider rice and potatoes to be substitutes, so that when the
price of rice rises, consumers purchase less rice and more potatoes. When the CPI is
computed following the increase in the price of rice, it
takes into account

a.

the increase in the price of rice.

b.

the decrease in the quantity of rice purchased and the increase in the quantity of
potatoes purchased.

c.

Both (a) and (b) are correct.

d.

None of the above is correct.


59.

Babe Ruth's 1931
salary was $80,000. Government statistics show a consumer price
index of 15.2 for 1931 and 214.5 for 2009. Ruth's 1931 salary was equivalent to a
2009 salary of about

a.

$5,874.

b.

$822,566.

c.

$1,128,947.

d.

$13,560,020.


60.
Sophia puts money in
the bank and earns a 5 percent nominal interest rate. If the
inflation rate is 2 percent, then after one year,

a.

Sophia will have 3 percent more money, which will purchase 5 percent more
goods.

b.

Sophia will have 3 percent more money, which will purchas
e 7 percent more
goods.

c.

Sophia will have 5 percent more money, which will purchase 3 percent more
goods.

d.

Sophia will have 5 percent more money, which will purchase 7 percent more
goods.



61.
Who of the following is
not

included in the Bureau of Labor Statistics' “employed”
category?

a.

those who worked in their own business

b.

those who worked as unpaid workers in a family member's business

c.

those waiting to be recalled to a job from which they had been laid off

d.

those who were temporarily absent from work because of vacation.


62.
Jai Li just lost her job, and she hasn’t yet started looking for a new one. The Bureau of
Labor Statistics counts Jai Li as

a.

unemployed and in the labor force.

b.

unemployed, but
not in the labor force.

c.

in the labor force, but not unemployed.

d.

neither in the labor force nor unemployed.


63.
Josh is a full
-
time college student who is not working or looking for a job. The Bureau of
Labor Statistics counts Josh as

a.

unemploy
ed and in the labor force.

b.

unemployed, but not in the labor force.

c.

in the labor force, but not unemployed.

d.

neither in the labor force nor unemployed.


64.
Sample Popul
ation

Person

Status

Allen

Unpaid stay at home dad. Has not looked for a
job in several years.

Ben

College president.

Allison

Part
-
time welder. Actively looking for full time work.

Brittany

Self
-
employed full
-
time wedding singer.

Cathy

Full
-
time physician’s assistant.

Calvin

Retired finance pr潦ess潲. Last applied f潲
w潲k 10 weeks ag漮

Diane

Laid
-
潦f f潲k
-
lift 潰erat潲 expecting t漠be recalled.

David

W潲ks f潲 a bicycle st潲e. Age 70.

Evelyn

Manager 潦 health f潯d st潲e.

Eli

Museum guard. Was n潴oat w潲k last week due t漠illness.

Fl潲a

Has never been empl潹ed.
L潯ked f潲 a 橯b last week.

Frank

Fired fr潭 橯b as an investment banker. Last l潯ked f潲 w潲k three
weeks ag漮

Refer t漠Sample P潰ulati潮.

H潷 many in the sample are unempl潹ed?



5



4

c.

3

d.

None of the above is correct.




65.


Refer to
Sample Population.

How many in the sample are in the labor force?

a.

10

b.

9

c.

8

d.

None of the above is correct.


66
.

Matilda just graduated from college. In order to devote all her efforts to college, she
didn’t hold a job. She is going to tour
around the country on her motorcycle for a
month before she starts looking for work. Other things the same, the unemployment
rate

a.

increases and the labor
-
force participation rate decreases.

b.

and the labor
-
force participation rate both increase.

c.

increases and the labor
-
force participation rate is unaffected.

d.

and the labor
-
force participation rate are both unaffected.


67.
In June 2009 the BLS reported a U.S. foreign
-
born population of 35.3 million. Of these,
22.7 million were employed and

1.4 million were unemployed. Based on these
numbers what were the unemployment rate and the labor
-
force participation rate of
the foreign
-
born U.S. population?

a.

1.4/35.3 and 22.7/35.3

b.

1.4/35.3 and 24.1/35.3

c.

1.4/24.1 and 22.7/24.1

d.

None of the above are correct.


68.

Suppose some country had an adult population of about 50 million, a labor
-
force
participation rate of 60 percent, and an unemployment rate of 5 percent. How many
people were unemployed?

a.

1.425 million

b.

1.5
million

c.

2.5 million

d.

5 million

Table 15
-
1

Labor Data for Aridia

Year

2010

2011

2012

Adult population

2000

3000

3200

Number of employed

1400

1300

1600

Number of unemployed

200

600

200


69
.

Refer to Table 15
-
1.

The labor force of Aridia

in 2010 was

a.

1400.

b.

1600.

c.

1800.

d.

2000.


70
.

Refer to Table 15
-
1.

The labor force of Aridia in 2011 was

a.

1300.

b.

1900.

c.

2400.

d.

3000.


71
.

Refer to Table 15
-
1.

The labor force of Aridia in 2012 was

a.

1600.

b.

1800.

c.

3000.

d.

3200.


72
.

Refer to Table 15
-
1.

The labor force of Aridia

a.

increased from 2010 to 2011 and increased from 2011 to 2012.

b.

increased from 2010 to 2011 and decreased from 2011 to 2012.

c.

decreased from 2010 to 2011 and increased from 2011 to 2012.

d.

decreased from 2010 to 2011 and decreased from 2011 to 2012.


73
.

Refer to Table 15
-
1.

The number of adults not in the labor force of Aridia in 2010 was

a.

200.

b.

400.

c.

600.

d.

1800.


74.

Refer to Table 15
-
1.

The number of adults not in the labor force of Aridia in 2011 was

a.

600.

b.

1100.

c.

1700.

d.

2400.



75
.

Refer to Table 15
-
1.

The number of adults not in the labor force of Aridia in 2012 was

a.

200.

b.

1400.

c.

1600.

d.

3000.


76
.

Refer to
Table 15
-
1.

The number of adults not in the labor force of Aridia

a.

increased from 2010 to 2011 and increased from 2011 to 2012.

b.

increased from 2010 to 2011 and decreased from 2011 to 2012.

c.

decreased from 2010 to 2011 and increased from 2011 to 2
012.

d.

decreased from 2010 to 2011 and decreased from 2011 to 2012.


77.

Refer to Table 15
-
1.

The unemployment rate of Aridia in 2010 was

a.

10%.

b.

12.5%.

c.

14.3%.

d.

80%.


78
.

Refer to Table 15
-
1.

The unemployment rate of Aridia in 2011 was

a.

20%.

b.

31.6%.

c.

46.2%.

d.

63.3%.


79
.

Refer to Table 15
-
1.

The unemployment rate of Aridia in 2012 was

a.

6.25%.

b.

11.1%.

c.

12.5%.

d.

56.25%.

80
.

Refer to Table 15
-
1.

The unemployment rate of Aridia

a.

increased

from 2010 to 2011 and increased from 2011 to 2012.

b.

increased from 2010 to 2011 and decreased from 2011 to 2012.

c.

decreased from 2010 to 2011 and increased from 2011 to 2012.

d.

decreased from 2010 to 2011 and decreased from 2011 to 2012.

81.
Refer to Table 15
-
1.

The labor
-
force participation rate of Aridia in 2010 was

a.

70%.

b.

77.8%.

c.

80%.

d.

87.5%.


82
.

Refer to Table 15
-
1.

The labor
-
force participation rate of Aridia in 2011 was

a.

43.3%.

b.

54.2%.

c.

63.3%.

d.

68.4%.




83
.
Refer to Table 15
-
1.

The labor
-
force participation rate of Aridia in 2012 was

a.

50%.

b.

53.3%.

c.

56.25%.

d.

88.9%.


84
.

Refer to Table 15
-
1.

The labor
-
force participation rate of Aridia

a.

increased from 2010 to 2011 and increased from 2011 to 2012
.

b.

increased from 2010 to 2011 and decreased from 2011 to 2012.

c.

decreased from 2010 to 2011 and increased from 2011 to 2012.

d.

decreased from 2010 to 2011 and decreased from 2011 to 2012.


85.

If all workers and all jobs were the same such that
all workers were equally well suited
for all jobs, then there would be no

a.

cyclical unemployment.

b.

frictional unemployment.

c.

natural rate of unemployment.

d.

structural unemployment.