A Survey Reveals That on a Small Island 40 People

question 140

Multiple Choice

A survey reveals that on a small island 40 people have jobs, 10 people are not working but looking for jobs, and 30 people are neither working nor looking for work. The unemployment rate on the island is:

• A)12.5%.
• B)20%.
• C)25%.
• D)50%.

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Definitions:

Increase in M

Refers to a rise in the money supply, which can lead to various economic effects such as inflation or lowered interest rates, depending on the context.

New Classical Economists

A group of economists who emphasize the importance of rational expectations and market clearing in explaining economic fluctuations.

Governmental Intervention

Actions taken by a government to influence or regulate various aspects of its economy or society, often to correct market failures or promote social welfare.

Wage and Price Controls

Government-imposed limits on the prices that can be charged for goods and services and/or wages that can be paid, typically in an attempt to control inflation.