Additional Application NEETS ARE THE NEW DISCOURAGED WORKERS IN
JAPAN
Who are the new discouraged workers in Japan?
In Japan, there is growing concern about young people who are not joining the labor
force. Young workers who have given up looking for work and often receive support
from their parents are known as NEETs—“not in education, employment, or training.”
Because Japan has an aging population and does not encourage immigration, it is
concerned about labor shortages and has focused attention on the NEETs. Many in
Japan are concerned over this phenomenon because it potentially signals a change in the
strong Japanese work ethic. However, the number of individuals in this category is quite
small, only 2 percent of Japan’s 33 million young people between the ages of 15 and 34.
Nonetheless, the fact that the Japanese decided to name this group suggests that it is
socially significant to them. In the United States, individuals not seeking work and
supported by their parents would be out of the labor force and possibly marginally
attached workers. SOURCE: Ginny Parker Woods, “In Aging Japan, Young Slackers
Stir Up Concerns” Wall Street Journal, December 29,
2005, p. A1.
If a person classified as NEET enters the labor market but could not find a job, the labor
force:
A) increases.
B) decreases.
C) remains constant.
D) becomes zero.
Given the following information about Metropolis Bank:
The required reserve ratio must be
A) 75 percent.
B) 60 percent.
C) 30 percent.
D) 15 percent.
Knowledge and skills are part of ________ in an economy.
A) educational functions
B) human capital
C) market growth
D) innovation
If the unemployment rate is below the natural rate, then we expect to see
A) falling wages, causing the short-run aggregate supply curve to shift up.
B) falling wages, causing the short-run aggregate supply curve to shift down.
C) increasing wages, causing the short-run aggregate supply curve to shift up.
D) increasing wages, causing the short-run aggregate supply curve to shift down.
If an individual in Germany must make transactions with firms in the U.S., he must
first:
A) convert his euros into U.S. dollars.
B) convert his U.S. dollars to euros.
C) A and B are correct.
D) neither A nor B is correct.
In the short run, ________ in the supply of money ________ the level of output.
A) increases; decrease
B) increases; do not change
C) increases; increase
D) decreases; do not change
In the most basic model of the economy, equilibrium output is achieved when:
A) the C + I line intersects the 45 degree line.
B) C + I equals output.
C) there is no change in inventories.
D) all of the above are correct.
Recall Application 5, “The Role of Political Factors in Economic Growth,” to answer
the following questions:
According to the application, why can’t technological growth exist sustainably in
authoritarian institutions?
A) because authoritarian regimes persecute scientists
B) because authoritarian regimes usually develop military over technology
C) because authoritarian regimes have difficulties in coping with change
D) because authoritarian regimes usually use religion as a tool to stay in power
A chain-weighted index
A) is used to understate the rate of inflation.
B) uses neighboring years’ data to calculate changes in nominal GDP.
C) calculates changes in prices by using an average of base years from neighboring
years to obtain a more accurate measure of real GDP growth.
D) is a useful tool for determining which fence to purchase.
Recall the Application about the Brazilian city of Silva Jardim that has issued its own
local currency to answer the following question(s). In order to entice local residents to
spend their money on stores in town, the small city of Silva Jardim in Brazil, hatched a
plan for its own currency. The currency is called the capivari and features a picture of a
local rodent on the bills. The capivaris are issued by a local bank, which holds one unit
of official Brazilian currency for each capivari it issued. Local merchants, however,
give discounts for paying in capivaris so that local residents are therefore encouraged to
make local purchases.
According to this Application, the small city of Silva Jardim in Brazil has issued its
own currency called the capivari. If people using the currency have enough confidence
in this locally-issued scrip to hold onto it for use in future transactions, the currency
will be acting as a
A) medium of exchange.
B) unit of account.
C) store of value.
D) commodity money.
If the marginal propensity to consume is 0.8, the value of the multiplier is:
A) 5.
B) 1.25.
C) 2.
D) 0.8.
A tariff is a:
A) tax on an imported good.
B) tax on a domestically produced goods.
C) limit on the amount a good that can be imported.
D) voluntary reduction of exports.
Along with currency not in banks and deposits in checking accounts, what is another
component of the M1 measure of money?
A) credit cards
B) debit cards
C) traveler’s checks
D) prepaid accounts
Which of the following pairs of events will definitely lead to an increase in the
equilibrium interest rate?
A) the sale of government bonds by the Federal Reserve and an increase in the price
level
B) a decrease in the discount rate and an increase in the level of real GDP
C) the purchase of government bonds by the Federal Reserve and a decrease in the price
level
D) an increase in the required reserve ratio and a decrease in the level of real GDP
Assuming a long-run aggregate supply curve, a decrease in government spending
results in ________ in output and ________ in price level.
A) no change; an increase
B) no change; a decrease
C) a decrease; a decrease
D) an increase; no change
If the government imposes a price ceiling that is above the equilibrium price, then the
market will experience:
A) an equilibrium.
B) a shortage.
C) an excess supply.
D) no scarcity.