Refer to the above figure. At Point B, the actual unemployment rate
A. tends to be higher than the natural unemployment rate.
B. is negative.
C. will decrease over time.
D. tends to be lower than the natural unemployment rate.
Answer: A
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Because of their brand names, Kodak, IBM, Honda, Daimler-Chrysler, and other well-known firms are able to charge significantly higher prices for their products than their competitors without losing any business. Expenditures made by firms to create brand names:
a. are always inefficient. b. provide reliability to consumers. c. lead to monopolies. d. necessarily lead to deadweight losses. e. would not exist if information was less costly for firms to obtain than consumers.
What can be said about the demand and supply of natural resources?
a. The quantity demanded of a natural resource will generally be less responsive to a change in price in the long run than in the short run. b. The supply of a natural resource will generally be more responsive to a price change in the long run than in the short run. c. The supply of a natural resource is fixed by nature; it cannot be responsive to a price change in the long run. d. None of the above is correct.
Public school teachers are known to have low wages. Which of the following would push the teachers' wages lower?
a. Public school teacher jobs are difficult. b. Public school teachers are required to be college graduates. c. Public school teachers belong to a union. d. Teaching in a public school has a high element of personal satisfaction.
Suppose that the marginal benefit per dollar spent on bicycles exceeds the marginal benefit per dollar spent on skateboards. The consumer can always increase their utility by buying:
A. more bicycles and fewer skateboards. B. fewer bicycles and more skateboards. C. more of both goods. D. The consumer is already maximizing utility.