Question 1: The Bureau of Labor Statistics reported that in December 2002, the total labor force was 142,542,000 of a possible 214,967,000 working-age adults. The total number of unemployed people was 8,590,000. From this information, explain how to calculate the following and calculate the rates for December 2002:
a. Labor force participation rate
b. Unemployment Rate
c. Employment Rate
Question 2: Supply/demand analysis states that equilibrium occurs where quantity supplied equals quantity demanded, but in U.S. agricultural markets quantity supplied almost always exceeds quantity demanded. How can this be?
Question 3: The government establishes rights to pollute. Without a pollution permit, you aren’t allowed to emit pollutants into the air, water, or soil. Firms are allowed to buy and sell these rights. In what way will this correct for an externality?
Question 4: What would happen to the U.S. trade deficit and to the U.S. exchange rate if Japan ran an expansionary monetary policy?
Question 5: How does personal income differ from national income?