Econ-545 Week 6 Quiz

1794 words 8 pages
| 1. | Question: | (TCO F) The size of the labor force in a community is 1,000, and 850 of these folks are gainfully employed. In this community, 50 people over the age of 16 do not have a job and are not looking for work. In addition, 80 people in the community are under the age of 16. The unemployment rate is ______. | | | Student Answer: | | Unemployment rate=unemployed/labor force*100 150/1000*100=15% 1000-850=150 (number of people unemployed) then divided by total labor force divided by 100 | | Instructor Explanation: | The unemployment rate is calculated by dividing the number of unemployed by the labor force. The labor force is calculated by subtracting three things from the population (# under 16, # of …show more content…

What would be feasible terms of trade between Egypt and Greece? | | | Student Answer: | | terms of trade between 2 countries lie somewhere between the opportunity costs in the 2 countries. in this case Egypt 1 shirt= 2 pants and in Greece case 1 shirt=4 pants, so the only feasible term of trade between the 2 countries would be anywhere in between these limits anything between 2 and 4 shirts and pants would work. at any terms of trade higher or lower than 2 or 4 pants per shirt , one of the countries would be able to do better than the terms of trade simply by trading off resources in their own country. | | Instructor Explanation: | Feasible terms of trade between 2 countries lie somewhere between the opportunity costs in the 2 countries. In this case, in Egypt -- 1 Shirt = 2 Pants, and in Greece -- 1 Shirt = 4 Pants. So, the only feasible terms of trade between the 2