When, because of hiring and firing costs, firms retain workers in a recession that they would otherwise lay off, there is said to be
A. involuntary unemployment.
B. labor hoarding.
C. voluntary unemployment.
D. a decline in capacity utilization.
Answer: B
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Which organization possesses a generally conceded and exclusive right to coerce adults?
A) The capitalist enterprise B) The modern church C) The government D) The family
Suppose Russia exports sunflower seeds to Ireland and imports coffee from Brazil. This situation suggests
a. Russia has a comparative advantage over Brazil in producing coffee, and Ireland has a comparative advantage over Russia in producing sunflower seeds. b. Russia has a comparative advantage over Ireland in producing sunflower seeds, and Brazil has a comparative advantage over Russia in producing coffee. c. Russia has an absolute advantage over Ireland in producing sunflower seeds, and Brazil has an absolute advantage over Russia in producing coffee. d. Russia has an absolute advantage over Brazil in producing coffee, and Ireland has an absolute advantage over Russia in producing sunflower seeds.
Real-wage unemployment is:
A. unemployment caused by workers who are changing their location, job, or career. B. also called cyclical unemployment. C. the effect of wages remaining persistently above the market-clearing level. D. a mismatch between the skills workers can offer and the skills that are in demand.
Figure 9.1 shows the cost structure of a firm in a perfectly competitive market. If the market price is $40 and the firm is currently producing the profit maximizing output level, its total variable cost is:
A. $12,500. B. $14,300. C. $19,800. D. $27,000.