The Economic Behavior of Individual Decision Makers and the Determination

question 3

Multiple Choice

The economic behavior of individual decision makers and the determination of price and output in specific markets are both studied in

• A)microeconomics
• B)macroeconomics
• C)positive economics
• D)normative economics
• E)disequilibrium economics

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Definitions:

Real Interest Rate

The interest rate expressed in dollars of constant purchasing power as a percentage of the amount loaned; the nominal interest rate minus the inflation rate.

Hidden Unemployment

Unemployment that includes individuals who have stopped looking for work or those who are underemployed, not fully reflected in official unemployment statistics.

Unemployment Compensation

Financial payments made to individuals who have lost their job until they find new employment, typically administered by government agencies.

Part Time

Employment with fewer hours per week compared to full-time jobs, often offering less benefits and lower pay.