Full employment is considered a major economic goal because:
a. specialization is not possible without full employment
b. economic growth can only occur when there is full employment.
c. the opportunity cost of unemployment is lost production.
d. profit maximization of firms can only occur when there is full employment.
e. inflation will be lower when full employment is achieved.
c
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Refer to the above table. The table represents information on the costs for Ajax Corporation. Ajax operates in a perfectly competitive market and the price of the product is $7. What does profit equal when quantity equals 2?
A) $14 B) -$2 C) $16 D) $2
In the supply-and-demand diagram of the market for peanut butter, the equilibrium point has moved down and to the right. What could have caused this?
A) a fall in the price of peanuts B) a rise in the price of peanuts C) a rise in income, assuming that peanut butter is an inferior good D) a shift in preferences toward peanut butter
Real GDP measures the:
A. Market value of goods and services produced. B. Standard of living. C. Actual quantity of goods and services produced. D. Level of productivity.
All of the following are true about the risk spread except it should:
A. have a direct relationship with the bond's yield. B. be higher for highly speculative bonds than investment grade bonds. C. have an inverse relationship with the bond's price. D. have a direct relationship with the bond's price.