When the economy is operating at an unemployment rate below the full employment rate,
a. actual output is above potential output
b. actual output equals potential output
c. actual output is below potential output
d. frictional unemployment has been eliminated
e. structural unemployment has been eliminated
A
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The most important thing about higher labor productivity is that it means
A) we can compete well with other nations. B) we are doing better than anyone else is. C) we can achieve a happier population. D) we can have a higher standard of living.
Specialization is beneficial:
A. At the individual firm level, but not at the national and international levels B. At the individual, regional, and even international levels C. Only if there are differences in the abilities of resources D. Only as long as money and capital goods are employed
Refer to Figure 7.1. Suppose that instead of $350, Angus earns only $250 by playing the bagpipes, but all other earnings remain the same. Who values the property rights to the air more?
A) Angus B) Dudley C) They value the property rights equally. D) Neither value the property rights.
Which of the following might make it inefficient for a farmer to continue growing crops on a particular piece of farmland?
A) A fall in crop prices B) A rise in the price developers are willing to pay for the land C) Erosion of the top soil D) Rezoning of the land by the county government E) Any of the above could do it.