Do the costs of forming a currency union fall or rise as the degree of labor market integration rises among member countries?
A) They will rise because any macroeconomic shock in one country will be transmitted to other members when there is greater labor market integration.
B) They will fall because labor market integration allows labor to move to other member countries when there are negative macroeconomic shocks at home.
C) They will rise because labor market integration allows labor to move to other member countries when there are negative macroeconomic shocks at home.
D) The costs of forming a currency union do not depend at all upon the degree of labor market integration among member countries.
Ans: B) They will fall because labor market integration allows labor to move to other member countries when there are negative macroeconomic shocks at home.
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In April 2000, the United States had a labor force of 141,230,000, employment of 135,706,000, and there were 67,986,000 people not in the labor force (all numbers rounded to the nearest 1000)
(a) Calculate the unemployment rate. (b) Calculate the participation rate. (c) Calculate the employment ratio.
Which of the following indicates that economies of scale have been overridden by other factors?
a. A company seeking to save on architect's fees during its move to Maryland copies the same building it used in San Francisco, so now it occupies the only office in Baltimore built to withstand earthquakes. b. The workers on the night shift at the Roadkill Diner, having no customers of their own, peel 400 potatoes, fill 300 catsup bottles, fry 100 pounds of bacon, and brew 80 quarts of coffee for the morning shift. c. Denny's Restaurant serves potatoes with its breakfasts nationwide, but in the South you can get grits instead. d. The Creepy Critters Summer Camp decides not to give campers a choice between hamburgers and hot dogs but makes creamed chipped beef on toast for everybody. e. Henry Ford said that his customers could have any color car they wanted, as long as they wanted black.