Economics Review 2

Front

How are wages for a particular job determined?

Back

the equilibrium between the supply and demand for workers for that job

Front

According to economic theory, what happens to job opportunities in low-paying jobs when the minimum wage goes up?

Back

The quantity of labor demanded goes down.

Front

The three main tools of monetary policy are: Tax rate changes, the discount rate, open-market operations; Tax rate changes, changes in government spending; The discount rate, the reserve ratio, and open-market operations; Changes in government spending, tax rates, and interest rates

Back

The discount rate, the reserve ratio, and open-market operations

Front

Your cousin tells you that his trucking company has resorted to arbitration with the trucker’s union. This means that

Back

A neutral third party is reviewing the dispute and will impose a legally binding decision.

Front

Products that would be used in calculating GDP include: toys manufactured in China at a factory owned by a U.S. company, cars manufactured in Tennessee at a factory owned by a Japanese automobile company, plastic manufactured in a factory in Kentucky and sold to toy manufacturers around the world to make plastic toys, cotton cloth manufactured in India and sold to clothes makers in the U.S.

Back

cars manufactured in Tennessee at a factory owned by a Japanese automobile company

Front

Products that would be used in calculating GDP include: toys manufactured in China at a factory owned by a U.S. company, cars manufactured in Tennessee at a factory owned by a Japanese automobile company, plastic manufactured in a factory in Kentucky and sold to toy manufacturers around the world to make plastic toys, cotton cloth manufactured in India and sold to clothes makers in the U.S.

Back

cars manufactured in Tennessee at a factory owned by a Japanese automobile company

Front

The lowest point in an economic contraction is called

Back

a trough

Front

What is the difference between seasonal unemployment and structural unemployment?

Back

Seasonal unemployment occurs because of schedules, whereas structural occurs because people lack skills.

Front

In the United States full employment is reached only when the unemployment rate is located within the range of 4 to 6 percent.

Back

4 to 6 percent

Front

What does it mean when a person is underemployed?

Back

The person has a job but they are overqualified for it.