Describe the alternative measures of unemployment
What will be an ideal response?
The Bureau of Labor Statistics keeps track of 6 alternative measures of unemployment:
• U-1 measures long-term unemployment. It counts as unemployed only workers who have been unemployed for 15 or more weeks.
• U-2 measures job losers; that is, only workers who lost their jobs (as opposed to quitting or reentering the labor market) are counted as unemployed.
• U-3 is the conventional measure of unemployment.
• U-4 adds discouraged workers to the conventional measure of unemployment.
• U-5 adds all marginally attached workers to the U-4 measure of unemployment.
• U-6 adds part-time workers who would like a full-time job (economic part-time workers) to the U-5 measure of unemployment.
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A firm in a perfectly competitive industry will maximize profits by adjusting
A) average total cost until it equals price. B) price until marginal revenue equals marginal cost. C) output until average revenue equals short-run average total cost. D) output until marginal cost equals marginal revenue. E) price until average revenue equals average total cost.
A country that is half as productive at producing some goods as another country, but is one quarter as productive at producing others, will not be able to gain from trade
a. True b. False Indicate whether the statement is true or false