Suppose the natural rate of unemployment is 5 percent. If the actual unemployment rate is 4 percent, then the cyclical unemployment rate is
A. 1 percent.
B. -1 percent.
C. 9 percent.
D. 0 percent as cyclical unemployment cannot be less than zero.
Answer: B
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The terms of trade for the American farmer during the last part of the 19th century
a. were made worse by political unrest. b. were caused by a decrease in the supply of agricultural products. c. could be enhanced by mechanization. d. worsened in part due to increased mechanization. e. Both c and d are correct.
Imagine a 2,000-acre park with picnic benches, trees, and a pond. Suppose it is publicly owned, and people are invited to enjoy its beauty. When the weather is nice, it is difficult to find parking, and the trash cans overflow with food wrappers on summer afternoons. Otherwise, it is a great place. The park is a common resource because
a. people can be prevented from using it. b. access is limited due to driving distances. c. if too many people use it, one person's use diminishes other peoples' use. d. anyone can use it without affecting anyone else.