Question Details

The survey of global labour market trends from the Geneva-based International Labour Organisation 



1. "Budget deficits are sometimes useful to spur consumption and thus encourage investment in business plant and equipment, but more generally they discourage rather than encourage investment because they ....." This clipping is best completed with 
a) create inflation b) raise interest rates 
c) lower interest rates d) decrease aggregate demand 
2. High savings rates have been a hallmark of Asia- economic development, helping the region- economies _______. Now they have come to be seen as a handicap because _______.” The best way to fill these blanks is 
a)	finance investment; the fall in aggregate demand worsens the recession 
b)	finance investment; this creates inflation 
c)	avoid inflation; the fall in aggregate demand worsens the recession 
d)	avoid inflation; this creates inflation 

3. “One theory as to why productivity in Canada and Europe does not adjust to recessions as robustly as the United States is that the U.S. market is inherently more flexible. Its labor laws and work force practices ……” This statement is best completed with 
a)	protect workers from being laid off 
b)	allow workers to be laid off easily 
c)	fix wages for workers 
d)	force workers to belong to unions 

4. “As profits increase, there- going to be a need for a capital rationing process.” The capital rationing process in the U.S. economy operates through 
	a)interest rates b) government spending c) taxes d) unemployment changes 

5. “The survey of global labour market trends from the Geneva-based International Labour Organisation (ILO) found that Americans worked longer hours than Europeans, clocking up an average of 1,825 hours last year, compared with 1,300-1,800 hours in leading European economies. While unemployment in the EU as a whole was higher than in the US, one key indicator, the employment-to-population ratio, rose from 56.1 to 56.7 per cent between 1999 and 2002. The same measure fell from 64.3 to 62.7 per cent in the US during the same period.” From these numbers it is likely that per capita income in the U.S. is 
a)	higher than in Europe and the participation rate is lower 
b)	higher than in Europe and the participation rate is higher 
c)	lower than in Europe and the participation rate is lower 
d)	lower than in Europe and the participation rate is higher 



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