Why are high rates of unemployment of concern to economists?
A. Higher rates of unemployment generally lead to higher inflation rates.
B. Environmental destruction is more prevalent when unemployment rates are high.
C. There is lost output that could have been produced if the unemployed had been working.
D. All of these options are reasons why economists are concerned about high unemployment
rates.
Answer: C
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Net investment equals gross investment minus depreciation
Indicate whether the statement is true or false
Which of the following economic lessons should we take from developing country crises in Latin America (and elsewhere)?
A) Only that it is important to choose the right exchange rate regime. B) Only that banking is of central importance in any government. C) The order in which reform measures are implemented are irrelevant. D) It is important to choose the right exchange rate regime and banking is of central importance in any government. E) The order in which reform measures are implemented are irrelevant and banking is of central importance in any government.