How do economists measure the "openness" of an economy? Explain if the U.S. economy has become more or less "open" over the past 60 years?
What will be an ideal response?
Economists measure the "openness" of an economy in terms of how much it trades with other economies. Over the past 60 years, the U.S. economy has become more open, with both imports and exports steadily increasing as a percentage of GDP.
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A knitting factory worker who loses her job because the company has relocated the plant to another country is an example of _____.
(A) Cyclical unemployment (B) Frictional unemployment (C) Seasonal unemployment (D) Structural unemployment
A good salesperson can sell $500,000 worth of goods, while a poor one can sell only $100,000 worth of goods. Job applicants know if they are good or bad, but the firm does not
A firm will offer job applicants a choice between a fixed salary of $10,000 or a 10% commission. Assuming risk-neutral salespersons and no opportunistic behavior, can the firm determine a prospective good salesperson from a poor one? A) Yes, because a poor salesperson will always choose the fixed salary. B) Yes, because a good salesperson will always choose the fixed salary. C) No, because a poor salesperson is indifferent between the two contracts. D) No, because a good salesperson is indifferent between the two contracts.