When the economy is operating at an output rate below its full-employment level, the
a. actual level of unemployment will exceed the natural rate of unemployment.
b. current rate of output will tend to persist into the future.
c. strong demand for resources will cause resource prices to rise.
d. actual unemployment rate will be less than the natural rate of unemployment.
A
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Which of the following would most likely be defined as a final good?
A) a computer tablet B) wheat C) iron ore D) lumber
If a firm's long-run average total curve shows that it can produce 5,000 DVDs at an average cost of $2.00 and 15,000 DVDs at an average cost of $1.50, this is evidence of
A) economies of scale. B) the law of supply. C) diminishing returns. D) diseconomies of scale.
The rationing function of prices means that
A) government is responsible for setting the prices of basic foods. B) all goods and services are produced by large firms. C) businesses determine what goods consumers should purchase. D) buyers and sellers synchronize their decisions through the price system.
The intersection of the average variable cost curve and the marginal cost curve is called the zero-profit point
a. True b. False Indicate whether the statement is true or false