Firms that pay an efficiency wage are likely to increase unemployment.

a.True

b.False

If the total population in the U.S. is 275 million, the adult population is 215 million, the number employed is 140 million, and the number of unemployed is 10 million, then the labor force participation rate is ________.

a. 69.7%

b. 54.5%

c. 65.1%

d. 50.9%

If hovercrafts replaced automobiles as a form of individual transportation, and this transition caused significant fluctuations in the economy, this would be evidence for which economist's theory of the business cycle?

a. John Maynard Keynes

b. Karl Marx

c. Joseph Schumpeter

d. Adam Smith

Suppose the price index increases from 300 to 306. What is the inflation rate?

2%

3%

6%

none of the above