Q46. Which type of unemployment is most likely to fall as a result of government

Question

Q46. Which type of unemployment is most likely to fall as a result of government policies that stimulate aggregate demand?
   a. frictional unemployment
   b. structural unemployment
   c. natural unemployment
   d. cyclical unemployment

Q47. Foreign outsourcing refers to the
   a. exporting of domestic jobs
   b. exporting of domestic goods
   c. selling of Treasury bonds to foreigners
   d. importing of oil from U. S. companies abroad

Q48. The wage below which a worker will not work is
   a. the equilibrium wage
   b. the union wage
   c. the efficiency wage
   d. the reservation wage

Q49. When unions cause wages to rise above the equilibrium wage,
   a. a surplus of labor results
   b. a shortage of labor results
   c. the demand for labor rises
   d. the demand for labor falls

Q50. Frictional unemployment is caused primarily by automation.
   a. true
   b. false

Explanation / Answer

46. Cyclical unemployment is a type of unemployment that occurs when there is not enough aggregate demand in the economy to provide jobs to everyone who wants to work. So, if some government policies stimulate aggregate demand, It would make cyclical unemployment fall. OPTION D

47. Foreign outsourcing refers to the importing of oil from US based companies abroad.

Foreign outsourcing refers to the practice of having goods and services produced by companies located outside of the United states. OPTION D

48. The reservation wage is the wage below which a worker will not work. It is the minimum wage rate at which a worker will be ready to take up a job. OPTION D

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