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2 4. Please define a positive externality and provide a brief example. (2 points) Lecture Series #1, slides 19 to 20 5. Please fill in the missing information in the table below, and then calculate the unemployment rate and the employment rate. Data is for December, 1997 . (5 points) Employment Variable Number ( millions ) Civilian Non-Institutionalized Population 205.479 Civilian Labor Force (205.479 - 67.100) 138.379 Employed Population 132.206 Unemployed Population (138.379- 132.206) 6.173 Population Not in Labor Force 67.100 Show all your work for the calculations below: Unemployment Rate = (6.173 / 138.379) x 100 = 4.46% Employment Rate = 100% - 4.46% = 95.54%
3 6. In 1969, a Whopper without cheese at Burger King had a price of \$.45. In 1998, the price of a Whopper without cheese at Burger King was \$1.99. In terms of purchasing power, did the price of a Whopper without cheese at Burger King increase or decrease from 1969 to 1998? (Show all of your calculations) (5 points) 1969: \$.45 x 4.5033 = \$2.026 (1998 dollars) 1998: \$1.99 x 1.00 = \$1.99

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