If there is unemployment and all businesses are operating at less than full capacity, then
A) society is at the wrong point on the production possibilities curve.
B) there are too many workers, and some people ought to leave the labor force.
C) we are not experiencing a net social cost to unemployment because it is offset by the capacity levels of the factories.
D) society is producing inside its production possibilities curve.
D
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Refer to Figure 24-3. Suppose the economy is at point A. If the economy experiences a supply shock, where will the eventual short-run equilibrium be?
A) A B) B C) C D) D
In the United States since World War II, there has been
a. a dramatic increase in the population living in rural areas b. a decline in the number of women in the labor force c. a decrease in the opportunity cost of working in the home d. more specialization of production within households e. a dramatic increase in the number of married women in the labor force
Refer to Figure 1.8. If the university decides to lower grading standards, then
A. We will slide up the curve from point B to point C. B. The curve will begin to bend downward at an earlier point. C. This curve will shift to the left. D. This curve will shift rightward.
In public education, the value of the services provided is
A) greater than the value that parents and students place on the services. B) equal to the value that parents and students place on the services. C) less than the value that parents and students place on the services. D) zero since they are a public good.