Quiz 2 - Understate 3. True or False: 1. Indifference...

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Quiz 2 – Friday September 5 Answer Key 1. If you are over 16 you are considered either employed, unemployed, or out of the labor force. 2. There are many measurement issues associated with calculating the unemployment rate. One of them is that discouraged workers may give up looking for a job and thus are no longer considered unemployed. Does this understate or overstate the unemployment rate?
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Unformatted text preview: Understate 3. True or False: 1. Indifference curves may be upward sloping. False. 2. Indifference curves of one person may not intersect. True. 4. The marginal rate of substitution (MRS) = MU L /MU C . The MRS is the slope of what curve? The indifference curve 5. What is the cost of leisure? Wage...
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