Principles of Economics (Second Edition)
2nd Edition
ISBN: 9780393614077
Author: coppock, Lee; Mateer, Dirk
Publisher: W. W. Norton & Company
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Chapter 24, Problem 8QFR
To determine
To explain:
The meaning of the statement which addressed the structural issues in an economy in terms of
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Principles of Economics (Second Edition)
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- Economists use labour-market data to evaluate how well an economy is using its most valuable resource— its people. Two closely watched statistics are the unemployment rate and the employment-population ratio. Explain what happens to each of these in the following scenarios. In your opinion, which statistic is the more meaningful gauge of how well the economy is doing? a. An auto company goes bankrupt and lays off its workers, who immediately start looking for new jobs. b. After an unsuccessful search, some of the laid-off workers quit looking for new jobs. c. Numerous students graduate from college but cannot find work. d. Numerous students graduate from college and immediately begin new jobs. e. A stock market boom induces newly enriched 60-year-old workers to take early retirement. f. Advances in healthcare prolong the life of many retireesarrow_forwardBriefly (1-2 sentences) explain whether the following statement is positive or normative and why. "An increase of 2% in the amount of money printed by the government leads to a 1.5% inflation rate."arrow_forwardIn his song “Allentown,” Billy Joel sings about the demise of the steel and coal industries in Pennsylvania. Why do you think the loss of manufacturing jobs was so difficult on the workers in areas like Allentown and parts of the Midwest where manufacturing was once the largest employer? What type of unemployment is the song about?arrow_forward
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