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Employment, Points, Endogenous Factor, Principles of Macroeconomics Homework

The key terms in this Principles of Macroeconomics course include Endogenous Factor, Employment, Unemployment, Points, Beyond the PPF, Inside the PPF, On the PPF, Principles of Macroeconomics Homework


When a student is making a decision about the college she will attend, which of the following would be an endogenous factor?

location of the school

the national unemployment rate when she graduates

the school being wiped out by a natural disaster

death of a family member requiring the student to return home for a semester

Explanation:

Endogenous factors are things you can plan for and take into consideration before going to a college, such as the location and price of tuition. Exogenous factors cannot be accounted for before you begin your education at a particular college because they are not related to the college you choose.


Where is unemployment such that employment is below the full-employment level plotted on a production possibilities frontier?

a point beyond the PPF

a point inside the PPF

a point on the PPF

It will depend on how much unemployment exists, because the point could be on or inside the PPF.

Explanation:

Unemployment is represented by points inside the frontier where resources are not being used efficiently. All points on the PPF are points at which the economy is at the full-employment level of employment.


Where would you plot full employment on a production possibilities frontier if all other resources are being used efficiently?

a point on the PPF

a point below the PPF

It will depend on how much full employment exists; the point could be on or inside the PPF.

a point beyond the PPF

Explanation:

Full employment is a characteristic of all points on the production possibilities frontier. For all points on the PPF, all resources available are being used efficiently.


When a student is making a decision about the college she will attend, which of the following would be an endogenous factor?

location of the school

the national unemployment rate when she graduates

the school being wiped out by a natural disaster

death of a family member requiring the student to return home for a semester

Explanation:

Endogenous factors are things you can plan for and take into consideration before going to a college, such as the location and price of tuition. Exogenous factors cannot be accounted for before you begin your education at a particular college because they are not related to the college you choose.


Where is unemployment such that employment is below the full-employment level plotted on a production possibilities frontier?

a point beyond the PPF

a point inside the PPF

a point on the PPF

It will depend on how much unemployment exists, because the point could be on or inside the PPF.

Explanation:

Unemployment is represented by points inside the frontier where resources are not being used efficiently. All points on the PPF are points at which the economy is at the full-employment level of employment.


Where would you plot full employment on a production possibilities frontier if all other resources are being used efficiently?

a point on the PPF

a point below the PPF

It will depend on how much full employment exists; the point could be on or inside the PPF.

a point beyond the PPF

Explanation:

Full employment is a characteristic of all points on the production possibilities frontier. For all points on the PPF, all resources available are being used efficiently.