When imports and exports for the same type of good are nearly equal:
a. the laws of comparative advantage break down.
b. it is an indication that nearly all the trade is intra-industry.
c. exports are probably just "finished" in the nation instead of being fully sourced there.
d. there is a very low level of intra-industry trade.
Ans: b. it is an indication that nearly all the trade is intra-industry.
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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.
Using a Website created by the Sacramento Bee in 2008 that published the salaries of all California state employees, economists conducted research and found that
A) job satisfaction depends only on a person's salary. B) employees with above-median earnings were, surprisingly, the least satisfied with their jobs. C) knowing their co-workers' salaries affected employees' job satisfaction. D) no employees seemed to be unsatisfied with their jobs or the salaries they were earning.