If the market mechanism is efficient, the marginal cost accurately measures the opportunity cost of a good or service.
Answer the following statement true (T) or false (F)
True
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The unemployment rate generally falls during ________ in the business cycle
A) a peak B) a recession C) a trough D) an expansion
In only one of the following situations is a nation's standard of living certain to increase. Which one?
a. Real GDP rises faster than population. b. Real GDP rises faster than the price level. c. Real GDP rises. d. Real GDP rises faster than the number of people employed. e. Real GDP rises faster than the number of people unemployed.
An increase in the supply of musicians ________ the number of musicians employed, and ________ the wages paid to musicians.
A. increases; increases B. increases; decreases C. decreases; increases D. decreases; decreases
The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5P.If this economy is open to trade, and the world price of a car is $6,000, the domestic quantity demanded will be ________ and quantity supplied will be ________.
A. 14,000; 8,000 B. 12,000; 10,000 C. 12,000; 8,000 D. 8,000; 14,000