10 Questions
Unemployed labor is considered 'idle resources' because they
are not actively seeking employment
Unemployment benefits are supported by government tax revenue and
increase the budget deficit
Why can there never be 0% unemployment?
There will always be people 'in-between' jobs
Certainty about the 'real' (purchasing power) of future returns is essential for lending to take place because
Lenders need to account for inflation in the interest rate
A stable and predictable price level allows lenders to
include inflation rate in interest rates
Which one of the following is NOT a factor of production?
Technology
Which movement on the production possibility curve (PPC) represents a change in resource allocation towards the production of health services?
Movement from point T to point C
What is the opportunity cost of using the land only for farming?
$15 billion
What would be the macroeconomic impact of a long strike by railway workers?
Decrease in transportation
What necessarily describes the market system?
Private ownership of resources
Test your knowledge on the impact of unemployment on the economy. Explore the concept of potential GDP loss, government support through unemployment benefits, and the effects on budget deficits. Learn about the criteria that make 0% unemployment unattainable.
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