A perfectly competitive firm will not earn an economic profit in the long run, because
A) it is a "price-maker."
B) it faces a perfectly inelastic demand curve.
C) there are no barriers to entry into the industry.
D) it produces differentiated products.
C
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If the working-age population is 20 million and labor force is 13 million, the labor force participation rate is
A) 65 percent. B) 35 percent. C) 153 percent. D) 60 percent. E) impossible to calculate because data on the number of employed workers is needed.
The change in total revenue that results from a one-unit change in the amount of a variable resource used is
a. average resource cost b. marginal resource cost c. marginal product d. marginal revenue product e. average revenue product
Example of structural unemployment?
A. Factory worker temporally laid off during a recession. B. Recent Graduates C. A mother chooses to stay with child instead of working. D. Unskilled worker can't get hired because the minimum wage is too high. E. A retired person living off her saving.
When estimating a short-run production function of the form Q = AL3 + BL2, it is necessary to specify in the computer routine that
A. B > 0. B. A < 0. C. the intercept term is forced to equal zero. D. a and b E. all of the above