QUESTION 4 Stay at home moms\" represent a significant percentage of the unemplo

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QUESTION 4 Stay at home moms" represent a significant percentage of the unemployed in the U.S. True False QUESTION S "Indexation" is accomplished when the CPI is used to compute "cost of living" adjustments for social security recipients and workers under long-term contracts so that payments maintain the same real value. True O False QUESTION 6 What is the effect of banning imports in order to encourage the development of domestic industries? Exports increase. People pay more for goods and services, because they are produced by less efficient domestic manufacturers, who are protected from foreign competition. People pay less for goods and services, because they are produced domestically The quaity of goods and services improves, because hey are produced domestically rather than imported from abroad.

Explanation / Answer

False because they are voluntary unemployed. Hence they are not unemployed. Unemployment represents umvoluntary unemployment

5 True. Indexation involves fixing wage etc with respect to cpi

6 b because the domestic producers are inefficient and trade barriers do not allow prices to fall

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