1) Which of the following would not increase structural unemployment?
a) The govt. raises minimum wage
b) more workers enter into labor unions
c) a firm pays its workers efficiency wages
d) the economy experiences more sectoral shifts
2) When a US household purchases a bottle of Italian wine from Italy for $100,
a) US consumption does not change, U.S. net exports decreases by $100 and , US GDP decreases by $100
b) US consumption does not change, U.S. net exports increases by $100 and , US GDP increases by $100
c) US consumption increases by $100, U.S. net exports decreases by $100 and , US GDP doesn't change
d) US consumption increases by $100, US net exports do not change and US GDP increases by $100
3) Expenditures on a nations domestic production
a) are less than its domestic production
b) are equal to its domestic production
c) are greater than its domestic production
d) could be less than, equal to, or greater than its domestic production
4) By not taking into account the possibility of consumer substitution, the CPI
a) understates the cost of living
b) overstates the cost of living
c) may overstate or understate the cost of living, depending on how quickly price rises
d) may overstate or understate the cost of living, regardless of how quickly prices rise.